Petrol prices could fall below N800 per litre following a new agreement between the Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Dangote Petroleum Refinery that allows marketers to purchase fuel directly from the refinery.

The arrangement is expected to reduce supply costs by eliminating the need for independent marketers to buy products through private depot owners, a practice that has often pushed up pump prices.

IPMAN National President, Abubakar Maigandi Shettima, said the agreement would enable marketers to sell petrol at more competitive prices while maintaining sustainable business operations. He noted that consumers could see further reductions in pump prices if the direct supply arrangement continues without disruptions.

According to him, the recent decline in petrol prices in some parts of the country shows the positive impact of increased local refining and improved access to products from the Dangote refinery.

The development comes as the Federal Government continues discussions with the Dangote refinery, fuel marketers and industry regulators on ways to ensure falling crude oil prices translate into lower petrol prices for Nigerians.

Industry stakeholders believe the new supply model will encourage competition in the downstream sector, improve product availability and allow motorists to benefit from lower fuel costs.

IPMAN also urged the government to continue supporting local refining and ensure independent marketers have fair access to petroleum products, saying this would help sustain lower prices and strengthen the country’s fuel supply chain.