IPMAN Agrees To N995/Litre Petrol Price With NNPCL

The Nigerian National Petroleum Company Limited (NNPCL) has reached an agreement to sell Premium Motor Spirit (petrol) to members of the Independent Petroleum Marketers Association of Nigeria (IPMAN) for N995 per litre. This resolution comes after the Department of State Services (DSS) intervened in the ongoing disputes between the two parties.

Hammed Fashola, the National Vice President of IPMAN, confirmed the new pricing and acknowledged the critical role of the DSS in resolving several pressing issues faced by marketers. “We truly appreciate their intervention. They have to step in whenever a potential crisis arises. Their involvement has helped create peace and understanding among the parties, allowing us to work together,” Fashola said.

Fashola shared that the tentative price of N995 per litre would help align the pricing for IPMAN members, reducing the likelihood of them selling petrol at significantly inflated rates compared to major marketers. However, he noted that geographical distance could still affect final retail prices.

“Our members currently sell petrol for around N1,200, depending on their location. With this new N995 rate, we expect a slight reduction in prices, but transportation costs from Lagos to more distant locations will still be a factor,” he explained. Fashola highlighted that IPMAN aims to create a more consistent pricing framework that considers all operational costs.

He also addressed the persistent queues at filling stations, attributing them to price differences rather than actual fuel shortages. “The queues are primarily due to the disparity in prices. If there were less variation, we wouldn’t see such long lines at filling stations,” he added.

Additionally, IPMAN plans to meet with Dangote Refinery this week to discuss direct purchasing options. Fashola expressed confidence that the government’s directive allowing marketers to buy petrol directly from local refineries could benefit their operations.

“We are eager to engage with Dangote, but we will also consider NNPC when making purchases, as it ultimately depends on which option offers the best price,” he noted.

Previously, IPMAN had expressed frustration over NNPCL charging independent marketers N1,010 per litre in Lagos, despite the national oil company acquiring petrol from Dangote Refinery at N898 per litre. This situation led to calls for refunds from NNPC regarding earlier petrol supply payments.

As these developments progress, both IPMAN and NNPCL are optimistic that the new agreement will lead to a more stable and equitable pricing structure within Nigeria’s oil sector.