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Summary
Effective Dec. 23, 2024, petrol prices in Nigeria will drop to N935 per litre due to a new agreement between IPMAN and Dangote Refinery. The agreement aims to stabilise fuel costs and enhance competition in the petroleum sector.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has announced a nationwide petrol price of N935 per litre, effective Monday, Dec. 23, 2024. This new pricing follows a revised agreement between IPMAN and Dangote Petroleum Refinery, which aims to stabilise fuel costs across the country.
According to Punch, IPMAN’s National President, Maigandi Garma, issued a statement on Sunday explaining that the price adjustment comes after a reduction in the ex-depot price at Dangote Refinery. The refinery will now charge marketers a fixed ex-depot price of N899.50 per litre. This new pricing framework is designed to ensure uniform petrol pricing across Nigeria.
Garma noted that this represents a significant decrease from the previous ex-depot price of N970 per litre. “The new pricing framework will allow marketers to sell petrol at N935 per litre at retail outlets, with a logistical cost of N36 factored in,” he stated.
The IPMAN president highlighted the competitive dynamics between the Nigerian National Petroleum Company Limited (NNPCL) and Dangote Refinery as key factors driving down prices. He described the price drop as a positive development resulting from a deregulated petroleum sector, stating,
“The competition between NNPCL and Dangote Refinery is healthy for Nigerians. It will bring transparency to PMS production costs and logistics while also driving down prices for consumers.”
Garma emphasised that this reduction will benefit marketers and consumers, increasing product availability and consumption.
“For marketers, the lower cost will enhance our retailing capacity and allow us to pick up more volumes. For commuters, this price decrease is a relief and will encourage heavier consumption,” he said.
IPMAN members will source products from both Dangote and NNPCL refineries based on proximity to retail outlets, with arrangements through MRS depots for Dangote and other depots for NNPCL. Garma underscored that the ongoing deregulation of the petroleum sector is starting to fulfil its promise of fair pricing through competition, ultimately benefiting Nigerians.
