IPMAN Strikes Deal with Dangote Refinery to Ease Fuel Shortages

IPMAN and Dangote Refinery Agree on Direct Petrol Supply
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has secured a deal with Dangote Refinery for direct fuel product supply. This partnership was confirmed by IPMAN’s National President, Abubakar Garima, during a press briefing in Abuja on Monday following discussions with the association’s National Working Committee.

Garima explained that the collaboration aims to ensure a steady and affordable supply of Premium Motor Spirit (PMS) across the nation. He highlighted that after meeting with Aliko Dangote and his management in Lagos, Dangote Refinery had agreed to supply IPMAN with PMS, AGO, and DPK directly, to be distributed through depots and retail outlets.

The IPMAN president urged members to support this partnership, noting its potential to enhance local production and positively impact Nigeria’s foreign exchange reserves. “By relying on Dangote Refinery and Nigerian refineries for fuel products, we can create more jobs and support President Bola Tinubu’s ‘Renewed Hope’ agenda,” he added.

This agreement, which follows several months of negotiations, is expected to improve efficiency, lower fuel prices, and stimulate economic growth.

Petrol Landing Cost Decreases, Yet Prices Surge
The estimated landing cost of Premium Motor Spirit (PMS) has dropped by 20.34%, now standing at ₦971.57 per litre, reflecting a reduction over the past three months. This decline is attributed to global market fluctuations and supply chain adjustments.

However, despite this drop, the retail price of petrol in Nigeria has surged by ₦443 or 71.79%, rising from ₦617 per litre on August 1, 2024, to ₦1,060 per litre by November 8, 2024. Independent marketers have raised prices even further, with petrol now selling for as much as ₦1,180 per litre.

The Major Energy Marketers Association’s daily energy bulletin shows that in August, oil marketers imported petrol at ₦1,219 per litre, when Brent crude was priced at $80.72 per barrel and the exchange rate stood at ₦1,611 per dollar. By November, the landing cost had dropped to ₦971.57 per litre, with Brent crude priced at $75.57 per barrel and the exchange rate at ₦1,665.84 per dollar.

HURIWA Accuses Government of Using Fuel Price Increases for Political Gains
The Human Rights Writers Association of Nigeria (HURIWA) has strongly condemned the ongoing fuel price hikes, accusing them of being a tactic by President Bola Tinubu’s administration to enrich his political allies.

In a statement issued by HURIWA’s National Coordinator, Emmanuel Onwubiko, the group argued that the repeated price hikes were never meant to benefit the average Nigerian citizen. Instead, they claimed that the policy is designed to financially reward the president’s friends and business partners.

“The policy of constantly raising fuel prices has done nothing to help ordinary Nigerians. Instead, it’s aimed at benefiting those close to the administration,” Onwubiko stated.

HURIWA also highlighted that these price increases have led to rising costs for essential goods, making it harder for millions of Nigerians to afford basic necessities. The group further claimed that the hikes have caused food prices to skyrocket, exacerbating poverty, malnutrition, and hunger for countless families.

“While poor Nigerians suffer from inflated costs and widespread poverty, a select few in the oil and gas sector are profiting massively,” HURIWA concluded, citing recent data that supports their claim.