Abuja, Nigeria – The Nigerian National Petroleum Company Limited (NNPC) has agreed to sell Premium Motor Spirit (PMS), commonly known as petrol, to members of the Independent Petroleum Marketers Association of Nigeria (IPMAN) at N995 per litre. This decision follows the intervention of the Department of State Services (DSS) in resolving the growing tension between the two parties.
IPMAN’s National Vice President, Hammed Fashola, disclosed this to The Bureau Newspaper, noting that the DSS’s mediation helped address several challenges that marketers were facing. He also confirmed that the Nigerian Midstream and Downstream Petroleum Regulatory Authority had agreed to settle the association’s outstanding N10 billion debt and address issues surrounding the direct purchase of fuel from the Dangote Refinery.
“We really appreciate their intervention. They are doing their job. Anywhere there may be a crisis, it is their duty to step in. Their intervention brought about peace and understanding between the parties, and everyone agreed to work together,” Fashola said.
When asked about the price of PMS, Fashola revealed, “For now, tentatively, they are offering us N995 per litre.”
Despite this ex-depot price, Fashola explained that transportation costs would influence the final retail price, noting that IPMAN members in remote areas might still sell petrol for around N1,200 per litre. However, he expressed optimism that the new pricing would reduce disparities between independent marketers and major marketers.
He further emphasized that IPMAN is working to achieve more uniform pricing, considering factors like transportation costs. “We want to work on that because we want to have a common ground. When we sit down and analyze the price offered, alongside all our expenses, we aim to have as uniform a price as possible,” Fashola added.
The association is also hopeful that this resolution will close the price gap between independent marketers and NNPC Retail outlets. The disparity has been a long-standing disadvantage for independent marketers, creating fuel queues in some cities. Fashola explained, “The queues you see are because of the price difference. If there isn’t much of a difference, people will just drive into any filling station, buy fuel, and leave. But the significant price gap is creating that scenario of queues.”
Regarding the directive that marketers can now buy petrol directly from local refineries, including the Dangote Refinery, Fashola confirmed that IPMAN plans to meet with Dangote officials to work out the modalities. However, he noted that IPMAN would continue to do business with the NNPC, choosing whichever offers the best price.
Earlier, IPMAN had expressed dissatisfaction over the NNPC’s pricing, revealing that while NNPC purchased petrol from the Dangote Refinery at N898 per litre, it was selling the product to independent marketers at N1,010 in Lagos and even higher in other cities. This led to a threat by the association to suspend operations if these pricing issues were not resolved.
With the recent DSS intervention, the association is hopeful that these challenges will be resolved, leading to a smoother supply chain and more competitive pricing across the country.