Direct supply from Dangote refinery will cut petrol pump price – IPMAN

 The Independent Petroleum Marketers Association of Nigeria
(IPMAN) says the pump price of petrol will decline further when marketers begin
to purchase products directly from the Dangote refinery.

 

Speaking in an interview with NAN, Elijah Shettima,
president of IPMAN, said the association’s priority is to ensure its members
have direct access to products from the refinery.

He said the arrangement would improve supply and encourage
lower pump prices.

“Our major concern is to ensure that independent marketers
can purchase products directly from the Dangote Refinery,” Shettima said.

“If importation becomes necessary, marketers should also be
allowed to import products independently.”

Shettima said the federal government should continue to
support local refining by creating an enabling environment for existing
refineries to operate efficiently while encouraging more private investment in
the downstream sector.

Responding to concerns over the pace of petrol price
reductions, the IPMAN president said pump prices would continue to adjust in
line with market conditions.

He said independent marketers have already reduced petrol
prices by about N125 per litre nationwide and would continue to pass on lower
procurement costs to consumers.

“We are ready to reduce prices as long as we can maintain
reasonable margins and remain profitable. Our goal is to make fuel more
affordable for consumers,” he said.

Asked whether petrol could sell for N900 per litre, Shettima
said the price would depend largely on the cost at which marketers buy products
from depot owners.

According to IPMAN’s president, if procurement costs
continue to decline, marketers could reduce pump prices further “even below
N800 per litre” where market conditions permit.

Shettima described Dangote refinery’s decision to supply
products directly to independent marketers as a major milestone for the
downstream petroleum sector, expressing confidence that the move would boost
competition, lower distribution costs and ultimately benefit consumers.

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