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Dangote refinery’s direct fuel distribution to ease supply challenges – IPMAN

The Rivers State chapter of the Independent Petroleum Marketers Association of Nigeria (IPMAN) has applauded the Dangote Petroleum Refinery’s plan to begin direct distribution of Premium Motor Spirit (PMS) nationwide, describing the…

The Rivers State chapter of the Independent Petroleum Marketers Association of Nigeria (IPMAN) has applauded the Dangote Petroleum Refinery’s plan to begin direct distribution of Premium Motor Spirit (PMS) nationwide, describing the move as a significant step toward resolving longstanding bottlenecks in Nigeria’s downstream petroleum sector.

Speaking to journalists in Port Harcourt on Wednesday, IPMAN Chairman, Mr. Tekena Ikpaki, welcomed the initiative, citing its potential to stabilize fuel supply and reduce distribution costs.

The Dangote Refinery recently announced it had acquired 4,000 Compressed Natural Gas (CNG)-powered trucks to support nationwide delivery of petroleum products.

Ikpaki explained that the direct supply program, scheduled to commence on August 15, aims to address key logistical and infrastructural constraints that have hindered fuel distribution across the country.

He added that the strategy could also help mitigate price volatility and improve the reliability of fuel supply for consumers.

“This multi-source distribution approach is crucial for building a more resilient and equitable fuel supply chain,” Ikpaki said.

“Expanding distribution channels will create flexibility, support competitive pricing, and promote stability at the pump.”

He also underscored the need for continued regulatory oversight to ensure fair competition among marketers of all sizes under the new system.

Retired Shell executive, Mr. Chijioke Odimbu, also praised the initiative, noting that the deployment of thousands of trucks could significantly reduce fuel transportation costs.

However, he cautioned that the success of the program would ultimately depend on the refinery’s ability to consistently produce adequate volumes of PMS.

“Even with 4,000 trucks, the supply problem won’t be solved without sufficient product,” Odimbu said.

In Port Harcourt, the announcement has sparked optimism among residents. Mr. Charles Ndudi, a commercial bus driver, expressed hope that reduced logistics costs would translate to lower pump prices and improved living standards.

Similarly, Mrs. Imelda James, a local food trader, said she expects the move to ease transportation expenses and reduce food prices.

The Dangote Refinery’s initiative has been widely regarded as a strong example of strategic public-private collaboration aimed at tackling Nigeria’s fuel distribution challenges.

NAN

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Published June 18, 2025
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