Marketers reveal why petrol prices will crash after new deal with Dangote Refinery

4 weeks ago 99

Independent Petroleum Marketers Association of Nigeria (IPMAN) has said that petrol prices will soon crash
IPMAN’s national publicity secretary, Chinedu Ukadike, said that Nigeria is in complete deregulation of the petroleum industry
He stated that the current pain caused by petrol scarcity and high prices will soon ease as supply stabilises

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has said that the current fuel scarcity in Nigeria will end and that the high petrol prices will eventually be reduced.

The national public relations officer of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, said that high petrol prices and scarcity are expected as the country transitions into complete deregulation

Dangote refinery’s petrol supply is inadequate

Ukadike said the country is moving from a regulated market to a free one, stating that the Dangote Refinery had been undersupplying the market.

New Telegraph reports that the IPMAN spokesman said the association is in talks with the $20 billion refinery to integrate its members to sell fuel from the plant, stating there would be positive news soon.

Petrol prices will soon crash

According to Ukadike, the issues will take some time to dissolve, adding that petroleum products have been deregulated in the country.

He expressed optimism that, with time, the prices of petroleum products will begin to crash.

Dangote begins direct supply to marketers

The development came after Dangote Refinery began directly supplying petrol to marketers, bypassing the Nigerian National Petroleum Company Limited (NNPC).

A previous report by Legit.ng disclosed that marketers strengthen their move to purchase the product directly from the facility. While others imported petrol, reports say over 123 million litres will hit the market in the coming weeks.

Legit.ng earlier reported that four vessels loaded with PMS arrived at the Lagos and Calabar ports between Friday, October 18 and Sunday, October 20, 2024.

According to the report, the Nigerian Ports Authority (NPA) document showed that about 123.4 million litres of petrol were docked at the two ports to boost the nationwide gasoline supply. Also, an earlier report said dealers intend to import the product to supplement supply from the Dangote Refinery.