Nigerians are set to witness a significant reduction in the retail price of Premium Motor Spirit (PMS), commonly known as petrol, following a groundbreaking initiative by the Dangote Petroleum Refinery. The refinery is finalising plans to deliver refined petroleum products directly to marketers across the country at no transportation cost, a move expected to drastically cut logistics expenses and, consequently, pump prices.
Free Delivery Model to Slash Distribution Costs
The National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Alhaji Abubakar Shettima, confirmed the development, stating that modalities are being perfected to ensure nationwide coverage. According to Shettima, the free delivery plan is a logistical service designed to offset the major cost component of transportation, which exerts immense pressure on final retail prices.
The initiative is scheduled to commence in January 2026 and will involve registered members of IPMAN and petrol stations nationwide. Shettima emphasised that this is not about giving away fuel for free to the public but about eliminating a critical cost layer in the supply chain. By using Dangote's own trucks to bridge products, the refinery aims to stabilise supply, support local marketers, and bypass middlemen.
Anticipated Impact on Pump Prices and Economy
Market operators are already anticipating a downward adjustment in pump prices once the exercise begins. "Our members anticipate a further crash from current price levels. Once the exercise begins, IPMAN members will review downward pump price levels to reflect the gains from free distribution," Shettima stated.
He highlighted that the impact would be particularly pronounced in northern Nigeria, where transportation costs from coastal depots are highest. Furthermore, marketers will no longer need to source products from importers, reducing associated demurrage and port charges. This shift is expected to:
- Significantly reduce the retail price of petrol at filling stations.
- Stabilise supply and eliminate artificial scarcity.
- Conserve foreign exchange by reducing reliance on imported refined products.
- Support government policies aimed at deepening domestic refining capacity.
Strategic Shift from Import Dependency
Shettima used the opportunity to urge the government to further reduce Nigeria's dependence on imported petroleum products, labelling continuous importation as an unsustainable model. He criticised "reckless import licensing" for distorting market dynamics, draining foreign exchange, destroying local jobs, and discouraging investment in the downstream sector.
The IPMAN President praised Dangote Refinery's alignment with federal government objectives and its existing efforts in expanding facilities to provide adequate support services for petroleum marketers. He assured Nigerians that "there will be no gap or scarcity in PMS supply" as this direct supply partnership takes effect.
IPMAN has consequently called on its members across the country to prioritise purchasing products from the Dangote Refinery, which already offers competitive pricing. This partnership marks a pivotal step towards a more self-sufficient and cost-effective petroleum market in Nigeria.
