IPMAN Announces Petrol Price Reduction To ₦935 Per Litre

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has announced a significant reduction in the price of Premium Motor Spirit (PMS), commonly known as petrol. Starting today, petrol will be sold at ₦935 per litre across outlets nationwide.

This price adjustment follows a new agreement between IPMAN and the Dangote Petroleum Refinery, which sets a fixed ex-depot price of ₦899.50 per litre. The arrangement aims to ensure uniform pricing and efficiency in distribution, with marketers incurring a logistical cost of ₦36 per litre.

Speaking on the development, IPMAN’s National President, Maigandi Garima, highlighted the key aspects of the new pricing framework.

“Dangote refinery has introduced a new arrangement for loading and pricing, where marketers will pay a fixed ex-depot price of ₦899.50. This standardized framework ensures that petrol consumption across the country is at the same rate. Previously, the loading price was ₦970 per litre, but starting today, petrol prices will drop to ₦935,” Garima said.

Healthy Competition Between NNPCL and Dangote

The reduction in petrol prices comes amid a growing rivalry between the Nigerian National Petroleum Company Limited (NNPCL) and the Dangote Refinery. Chinedu Ukadike, IPMAN’s Publicity Officer, described this competition as beneficial for Nigerians.

“The rivalry for market share between NNPCL and Dangote is advantageous for Nigerians. This competition will ultimately reveal the actual costs of producing PMS and the associated logistics expenses,” Ukadike explained.

He emphasized that the deregulated sector’s dynamics are driving competitive pricing, resulting in lower costs for commuters.

“With the price reduction, marketers will be able to pick up higher volumes, making PMS more accessible to consumers. The decreased cost will likely lead to increased consumption and benefit the overall economy,” Ukadike added.

Under the new agreement, marketers will load products from both the Dangote Refinery and NNPCL depots. The arrangement ensures proximity to retail outlets, enhancing efficiency in distribution.

“The reduced price is a welcome development as it allows marketers to purchase and distribute products more efficiently. Dangote’s arrangement is via MRS, while NNPCL is helping to load from other depots,” Ukadike noted.

The reduced petrol price is expected to provide relief to Nigerians, offering more affordable fuel prices and fostering healthy competition in the deregulated market. Analysts believe this development will encourage economic growth, reduce transportation costs, and improve access to PMS nationwide.