Independent Marketers Seek to Bypass Middlemen to Cut Fuel Costs
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has expressed optimism that petrol prices in Nigeria will decrease once oil marketers begin purchasing fuel directly from the Dangote Petroleum Refinery.
Chinedu Ukadike, IPMAN’s spokesperson, made this statement during an interview on Channels Television, emphasizing that direct access to products will help eliminate the multiple distribution layers that inflate fuel costs.
Ukadike revealed that discussions are currently underway between IPMAN and the Dangote Refinery to allow independent marketers to lift premium motor spirit (PMS) directly. He expressed optimism about a positive outcome, which he believes will bring relief to Nigerians struggling with high petrol prices.
“We’ve reached out to Dangote, and he has responded positively, expressing a willingness to sit down with us for discussions. We’re hopeful that once this meeting happens, the outcome will be shared with Nigerians,” Ukadike said.
Currently, the Dangote Refinery has been mandated by the federal government to sell petrol exclusively to the Nigerian National Petroleum Company Limited (NNPC), with independent marketers buying through the national oil company.
Ukadike rejected the notion that independent marketers prioritize profit over public interest, refuting claims that they are responsible for high fuel prices. He reiterated IPMAN’s commitment to making petrol more affordable and ensuring a streamlined distribution system.
“Our goal with this collaboration with Dangote is to eliminate the multiple layers of distribution that inflate fuel prices. We also look forward to working with NNPC, especially as the Port Harcourt Refinery is set to come online soon,” Ukadike said.
As of September 12, only 3 percent of local marketers had begun purchasing products from the Dangote Refinery. According to Devakumar Edwin, vice-president of Dangote Industries Limited (DIL), low patronage has forced the refinery to export 97 percent of its products.
Ukadike emphasized that direct access to refined products from the Dangote Refinery is key to preventing unnecessary price hikes. He also expressed hope that increased competition, driven by the upcoming launch of the Port Harcourt Refinery, will result in lower petrol prices.
“As supply increases, prices will fall. We’ve seen this happen before in industries like telecommunications, where high prices dropped as competition grew,” he explained.
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