The Nigerian National Petroleum Company Limited (NNPCL) has agreed to sell Premium Motor Spirit (petrol) to members of the Independent Petroleum Marketers Association of Nigeria at N995 per litre.
This decision followed the intervention of the Department of State Services, which helped resolve a dispute between the two parties.
The National Vice President of IPMAN, Hammed Fashola, mentioned that the DSS’s involvement addressed several issues facing the marketers.
He also confirmed that, thanks to this intervention, the Nigerian Midstream and Downstream Petroleum Regulatory Authority would pay the association’s outstanding N10 billion and resolve matters regarding the direct purchase of petrol from the Dangote refinery.
“We really appreciate their intervention. They are doing their job. Anywhere they have seen that there may be a crisis, it is their duty to intervene. And their intervention brokered peace and understanding between the parties, and everybody agreed to work together,” Fashola stated.
When asked about the NNPC’s selling price for PMS to IPMAN, he replied, “For now, tentatively, I think they are offering us N995 per litre.”
Fashola assured that with the N995 ex-depot price, IPMAN members would no longer have to sell at significantly higher prices than major marketers, although he noted that transportation costs could still affect prices.
“Our members sell at N1,200 or so and this depends on the location. I think with the N995, there will be a little reduction. Don’t forget that if you transport a product from Lagos to a far distance, you will pay for transportation and other charges.
“We want to work on that because we want to have a common ground. When we sit down and look at the price analysis offered to us, and factor in all our expenses, we want to have a uniform price as much as possible.
“So, I will not be able to tell you the exact price now, but we are working on it, especially in the Lagos axis and other zones. We will look at the transportation cost and all that. At the end of the day, we will fix the price for ourselves,” he stated.
Fashola highlighted that IPMAN is focused on achieving competitive pricing, emphasizing the disadvantage posed by price disparities with independent marketers.
“The price disparity has been a disadvantage between us and the NNPC Retail and major marketers.
So, we are trying to look at how to close that gap so that we come back fully into the business.
The lack of direct supply has been our problem, and now that we are solving that problem, I don’t think that disparity will be there again,” he stressed.
He also explained that the queues seen at some filling stations are largely due to price differences.
“The queues you see are because of that difference in prices, that’s why people are saying there are queues. There are no queues; it is the price disparity that is causing the queues.
So, if there is not much difference, we have filling stations everywhere; just drive in, buy fuel, and go. But that so much difference in the price is creating that scenario of queues,” he narrated.
Regarding the new directive allowing marketers to purchase petrol directly from local refineries, Fashola said the association would meet with Dangote this week.
“For now, we intend to meet with Dangote this week to see how we work out the modalities and all that. The Federal Government has given a directive and we want to take full advantage of that,” he posited.
He emphasized that IPMAN is not disregarding the NNPC, stating they would seek the best price available.
“At the same time too, we are not ignoring NNPC. So, whichever way, we are ready to do business with NNPC. It depends on the price, we go for the best.
IPMAN previously reported that the cost of petrol from the Dangote Petroleum Refinery to NNPC was around N898 per litre, yet NNPC was selling it to independent marketers at N1,010 per litre in Lagos.
The association, which controls over 70 percent of filling stations nationwide, opposed this pricing and threatened to take action, also demanding a refund from NNPC for previous petrol supply payments made by its members.
The IPMAN national president, Abubakar Maigandi, argued during a live television interview that the price offered by NNPC was higher than what they paid for the product from the Dangote refinery.
He noted that independent marketers’ funds had been held by the national oil company for about three months.
According to him, NNPC purchased the product from the refinery at N898 per litre but is asking marketers to buy it at N1,010 per litre in Lagos; N1,045 in Calabar; N1,050 in Port Harcourt; and N1,040 in Warri.
“Our major challenge now is that independent marketers have an outstanding debt from the NNPC and the company collected products through Dangote at a lower rate, which is not up to N900, but they are telling us now to buy this product from them at the price of N1,010 per litre in Lagos; N1,045 in Calabar; N1,050 in Port-Harcourt; and N1,040 in Warri,” Maigandi stated.
