By Ayomide Otitoju
The Nigerian National Petroleum Company Limited (NNPC) has agreed to sell Premium Motor Spirit (PMS), or petrol, to members of the Independent Petroleum Marketers Association of Nigeria (IPMAN) at N995 per litre. This development follows the intervention of the Department of State Services (DSS) in resolving a dispute between the two parties.
Hammed Fashola, IPMAN’s National Vice President, confirmed the resolution in an interview, expressing appreciation for the DSS’s role in addressing the challenges faced by independent marketers. “Their intervention has brokered peace and understanding between the parties, and everyone has agreed to work together,” Fashola said.
The intervention also led the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to commit to paying IPMAN an outstanding N10 billion and resolving issues surrounding the direct purchase of petrol from the Dangote refinery.
When asked about the new pricing arrangement, Fashola stated, “For now, tentatively, I think they are offering us N995 per litre.” He added that the new price would reduce the disparity between independent marketers and major marketers, who often sell fuel at lower prices.
IPMAN members had previously sold petrol at higher rates, ranging around N1,200 per litre due to transportation costs and other expenses. With the new ex-depot price, Fashola assured that the price difference would narrow, though exact figures would depend on various factors, including transportation costs from Lagos to other parts of the country.
The price disparity between independent marketers and NNPC Retail, along with major marketers, has been a significant challenge for IPMAN, according to Fashola. He noted that this difference has led to queues at filling stations in some cities, stating, “The queues you see are because of that difference in prices… If there is not much difference, we have filling stations everywhere; just drive in, buy fuel, and go.”
Regarding the opportunity to purchase petrol directly from local refineries, Fashola revealed that IPMAN plans to meet with Dangote Refinery to discuss potential collaboration. “The Federal Government has given a directive, and we want to take full advantage of that,” he said, while also emphasizing that IPMAN remains open to doing business with NNPC, depending on the best price available.
This resolution comes after IPMAN had raised concerns over the cost of petrol from the Dangote Refinery to NNPC, which was reportedly about N898 per litre. Independent marketers, however, were asked to purchase the product from NNPC at a higher rate of N1,010 per litre in Lagos and even more in other cities like Calabar, Port Harcourt, and Warri. The association, which controls over 70% of filling stations nationwide, had threatened to halt operations over the price disparity and demanded a refund for earlier payments made to NNPC.
IPMAN’s National President, Abubakar Maigandi, had previously criticized NNPC for selling the product to independent marketers at a significantly higher rate than what they paid to purchase it from Dangote Refinery, further complicating the pricing situation.
