Nigerian petroleum marketers are increasingly aligning with the Dangote Refinery in response to a rise in depot fuel prices. The Independent Petroleum Marketers Association of Nigeria (IPMAN) has indicated that this shift is partly driven by the recent hike in the depot price of Premium Motor Spirit (PMS), which increased from ₦907 to ₦950 per liter—a 4.7% rise.

This adjustment in the depot price corresponds to a broader global trend, as the cost of crude oil surged to $80 per barrel from $73 per barrel within a week. The volatile crude oil market, influenced by supply dynamics and geopolitical factors, continues to affect fuel prices globally, with downstream impacts on Nigeria's petroleum sector.

IPMAN's Public Relations Officer, Chinedu Ukadike, confirmed that the organization has authorized its members to purchase petroleum products directly from Dangote Refinery. The refinery agreed to supply 60 million liters of PMS to IPMAN members every week, with a minimum quantity of two million liters at ₦909 per liter. Ukadike stated that relying on depot owners for products is no longer viable, especially when direct purchases from the refinery are possible.

This arrangement follows an agreement signed between Dangote Petroleum Refinery and IPMAN in November last year. As part of the agreement, the refinery will supply 240 million liters of petrol monthly, significantly boosting the association's distribution capacity. The Dangote Refinery has reaffirmed its capability to meet the fuel needs of Nigerian consumers, positioning itself as a reliable and sufficient supplier in the domestic petroleum market.

This assertion counters claims by some marketers that supplemental imports were necessary to address fuel shortages. In October 2024, the refinery announced a significant stockpile of 500 million liters of petrol, emphasizing its preparedness to cater to national demand. Aliko Dangote, the founder of the refinery, had addressed marketers and the Nigerian National Petroleum Corporation (NNPC), urging them to cease fuel imports and rely on the refinery's robust supply.

The shift to Dangote Refinery is expected to have a significant impact on Nigeria's petroleum sector, providing a reliable source of fuel for consumers and reducing the country's reliance on imports. As the global crude oil market continues to fluctuate, the Dangote Refinery's ability to meet domestic demand will be crucial in stabilizing fuel prices and ensuring a consistent supply of petroleum products.

In the broader context, this development highlights the importance of investing in domestic refining capacity to address fuel shortages and reduce reliance on imports. As African countries continue to navigate the complexities of the global energy market, the Dangote Refinery's success serves as a model for other nations seeking to develop their own refining capabilities and achieve energy self-sufficiency.