The Independent Petroleum Marketers Association of Nigeria (IPMAN) has announced that petrol will now be sold at N935 per litre starting Monday the 23rd December 2024, following a revised pricing arrangement with the Dangote Petroleum Refinery.
According to IPMAN’s National President, Maigandi Garima, the refinery’s reduction of the ex-depot price to N899.50 per litre and the introduction of a uniform pricing system will allow marketers to sell petrol at N935 per litre nationwide, with logistics costs of N36 per litre.
“The Dangote Refinery has introduced a new loading and pricing structure where marketers will pay a fixed ex-depot price of N899.50k,” Garima said. He added that the initiative aims to stabilize petrol prices across the country. Previously, the loading price was N970 per litre, but this new system reflects a significant reduction.
IPMAN further revealed that over 30,000 members are prepared to commence petrol loading from the Dangote Refinery and the Port Harcourt Refining Company under the new pricing framework.
Price Variations Across Lagos
Reports show that petrol prices in Lagos dropped to N950–N980 per litre at stations like MRS, BOVAS, and NNPC on Sunday, though prices remained above N1,000 per litre at other outlets. IPMAN has assured that prices will align to N935 per litre at more outlets under the new system.
Healthy Competition in the Downstream Sector
The price adjustment follows intense competition between the Dangote Refinery and the Nigerian National Petroleum Company Limited (NNPCL). Last week, NNPCL slashed petrol prices by 12%, matching Dangote’s ex-depot price of N899 per litre.
Chinedu Ukadike, IPMAN’s National Publicity Officer, highlighted the benefits of this competition, stating, “This price war is good for Nigerians. It will reveal the actual cost of petrol production and logistics while fostering a competitive, deregulated market.”
Ukadike emphasized that the price reduction would boost sales volumes and benefit commuters. He noted that marketers will source products from both refineries, depending on proximity to their retail outlets.
PETROAN Members Join Dangote’s Distribution Network
The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) has also begun registering its members to lift petrol from MRS filling stations, which partner with Dangote Refinery. PETROAN President, Billy Gillis-Harry, confirmed the partnership, noting that it aligns with efforts to lower pump prices nationwide.
Gillis-Harry stated, “We expect the price drop to take effect quickly as distribution expands. Our collaboration with Dangote will ensure Nigerians benefit from these reductions.”
Refinery Updates
Meanwhile, the Dangote Refinery is operating at 85% capacity, processing 550,000 barrels per day (bpd). According to its Head of Operations, Edwin Devakumar, the refinery plans to produce European-standard products by January 2024.
The new pricing initiative reflects a significant shift in Nigeria’s deregulated downstream sector, aiming to stabilize petrol supply and pricing nationwide.
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