The rising cost of Premium Motor Spirit (PMS), commonly known as petrol, has led members of the Independent Marketers Association of Nigeria (IPMAN) to shift their focus toward the Dangote Petroleum Refinery. As depot prices climb to N950 per litre—up from N907 last week—marketers are searching for more cost-effective options.
The price hike, attributed to the increasing cost of crude oil, has significantly impacted the petroleum industry. Crude oil prices rose from $73 per barrel last week to $80 per barrel this week, intensifying the pressure on marketers to find viable alternatives.
Speaking in an interview, Mr. Chinedu Ukadike, IPMAN’s Public Relations Officer, confirmed the association’s decision to source products directly from the Dangote Refinery. “We have encouraged our members to buy from Dangote Refinery. We cannot continue to depend on depot owners to buy our products, especially when we can buy directly from the refinery,” he said.
The Dangote Refinery offers PMS at N909 per litre for a minimum purchase of two million litres, making it an attractive option for marketers. Additionally, MRS, which distributes Dangote refinery petrol, has also emerged as a preferred supplier due to competitive pricing and logistical support.
IPMAN’s National President, Alhaji Garima, highlighted the advantages of this shift, saying, “Our members still buy from the Nigerian National Petroleum Company Limited, NNPCL at N899.50 per litre. For now, the portal to purchase the product is closed. We buy a high volume of product from Dangote/MRS arrangement as it is cheaper.”
“Although some of our members still buy from private depots, we have advised them that the arrangement with Dangote is the best. Many also patronise MRS because of the incentive the company provides.
“For instance, if a marketer buys the product from Lagos and the product is being transported to Kano, MRS can sell at N850 per litre. That is the reason why some of our marketers that get MRS petrol can sell at N935 per litre.”
He added: “However, we advise our members to collaborate and join funds together to buy directly from Dangote Refinery. The Federal Government is no longer subsidising petrol, which explains why petrol price is no longer fixed as it used to be.”
