Dangote’s Direct PMS distribution will tackle downstream limitations — IPMAN
The Rivers State chapter of the Independent Petroleum Marketers Association of Nigeria (IPMAN) has endorsed Dangote Petroleum Refinery’s proposed direct distribution of Premium Motor Spirit (PMS), describing it as a major step towards addressing longstanding inefficiencies in the nation’s downstream sector.
Speaking to journalists in Port Harcourt on Wednesday, IPMAN Chairman, Mr Tekena Ikpaki, welcomed the initiative and expressed confidence that it would significantly improve the supply chain for petroleum products.
Dangote Refinery had recently disclosed the procurement of 4,000 brand-new Compressed Natural Gas (CNG)-powered trucks, a move aimed at bolstering nationwide fuel distribution and reducing reliance on third-party logistics.
The new strategy is expected to commence on 15 August and is designed to eliminate recurring supply challenges, reduce transportation costs, address infrastructural constraints, and help stabilise pump prices.
Ikpaki noted that the upcoming supply model would provide much-needed relief for marketers who have long struggled with erratic supply patterns and market volatility.
“We are optimistic that this decentralised supply framework will usher in a more resilient, competitive, and equitable distribution system. Multiple supply channels will give marketers better flexibility, improve pricing dynamics, and ultimately translate into greater stability for consumers,” he said.
He also called for consistent regulatory oversight to ensure fair competition, noting that both large and small-scale marketers should benefit from the reforms.
Ikpaki added that the initiative reflected strong industrial leadership and was an encouraging example of public-private sector synergy aimed at achieving energy efficiency and economic growth.
Also reacting to the development, Mr Chijioke Odimbu, a retired employee of Shell Petroleum Development Company (SPDC), described the initiative as timely and commendable. He noted that transportation costs are a key driver of high PMS prices, and that the deployment of 4,000 CNG trucks would help address that.
“With the trucks distributing PMS nationwide, the issue of bottlenecks will be minimised. However, the refinery must also ensure that sufficient volumes of fuel are available. Without an adequate product supply, even 4,000 trucks cannot achieve much,” Odimbu said.
Echoing similar sentiments, Mr Charles Ndudi, a commercial bus driver in Port Harcourt, said he was eager for the programme’s rollout.
“If logistics costs are removed from the overheads, pump prices will drop. This will ease transportation costs and improve living conditions for everyday Nigerians,” he stated.
Mrs Imelda James, a foodstuffs trader, also applauded the refinery’s effort. She said that direct supply would not only help lower fuel prices but would also ease the cost of food and general transportation.
Residents and stakeholders across the state are now hopeful that the distribution strategy, when implemented, will signal a turning point for the Nigerian fuel distribution network.