The Independent Petroleum Marketers Association of Nigeria (IPMAN) has issued a significant forecast regarding the future of fuel pricing in the country, revealing that the supply of Premium Motor Spirit (PMS) from the Dangote Petroleum Refinery is set to drive down the cost of petrol at the pump. This announcement marks a pivotal moment for Nigeria’s downstream oil sector, offering hope to millions of consumers who have grappled with fluctuating fuel costs.
In a statement signed by the IPMAN National President, Alhaji Abubakar Maigandi Shettima, the association officially called upon its members across the nation to prioritize the patronage of the Dangote Refinery. The directive is based on the refinery’s competitive pricing model, which IPMAN describes as the “best affordable price” currently available to marketers. This strategic pivot towards domestic sourcing is expected to have a ripple effect on the retail market, directly benefiting the end-user.
A major catalyst for this projected price reduction is the recently solidified agreement between IPMAN and the Dangote Refinery. This deal facilitates the direct supply of petroleum products to registered IPMAN members, bypassing intermediaries and streamlining the distribution chain. Furthermore, the association expressed enthusiasm over a logistical breakthrough scheduled to begin in January 2026: the commencement of free delivery of products to filling stations nationwide. This incentive is poised to significantly lower the overhead costs for marketers, savings that can subsequently be passed on to consumers in the form of reduced pump prices.
Shettima emphasized the association’s dominance in the sector to reassure the public about the reliability of this new supply chain. “The association has the highest percentage of the supply chain of the PMS downstream sector, controlling over 80% of the PMS retail market,” he stated. With such a substantial market share, IPMAN’s commitment to the Dangote Refinery effectively guarantees that the benefits of this partnership will be felt in every corner of Nigeria. Shettima declared confidently that there would be “no gap or scarcity in PMS supply to Nigerians,” signaling an end to the erratic shortages that have plagued the country in the past.
The shift towards the Dangote Refinery aligns with a broader national objective to deepen domestic refining capacity. IPMAN has taken a strong stance against the continued importation of petroleum products, viewing it as detrimental to the national economy. Shettima argued that continuous importation is an “unacceptable parallel business model” that distorts market dynamics, drains scarce foreign exchange reserves, and exacerbates poverty by exporting jobs that should exist within Nigeria. By embracing local refining, the sector aims to stabilize the economy and attract potential investors who may have been previously deterred by the volatility of an import-dependent market.
The association also acknowledged the role of political will in achieving these milestones. IPMAN applauded the “pragmatic leadership” of President Bola Ahmed Tinubu, particularly his decision to readjust the leadership of key regulatory bodies—the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). These policy moves, according to IPMAN, have created an environment conducive to the blooming partnership between marketers and local refiners.
However, amidst the optimism, challenges remain. IPMAN used the opportunity to draw attention to outstanding financial obligations, reminding the new heads of the regulatory bodies of the bridging claims owed to its members. The debt, totaling over N190 billion, remains a critical issue. Shettima specifically urged the new leadership of the NMDPRA to treat this debt as a matter of urgency, noting that settling these claims is vital for the continued financial health of the marketers who are essential to the distribution network.
In conclusion, the partnership between IPMAN and the Dangote Refinery represents a transformative step for Nigeria’s energy sector. With the promise of lower prices, steady availability, and an end to reliance on imports, the outlook for 2026 and beyond appears increasingly positive for Nigerian consumers.
