Fuel Prices to Change as NNPC Sells Petrol to Marketers at New Rate
- The Independent Petroleum Marketers Association of Nigeria (IPMAN) has disclosed that the NNPC has agreed to sell petrol to its members at N995/litre
- An IPMAN official, Hammed Fashola, disclosed that with the new ex-depot prices, there will be a slight reduction in prices
- He hinted that the association is considering selling the product at N1,200 per litre but said it depends on the location
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Nigerian National Petroleum Company Limited (NNPC) has agreed to sell petrol to Independent Petroleum Marketers Association of Nigeria (IPMAN) members at N995 per litre.
The development comes amid the Department of State Services intervention in the face-off between the marketers and the state oil firm.
Source: UGC
DSS intervenes between IPMAN and NNPC
Hammed Fashola, IPMAN’s national vice president, disclosed that the DSS intervention solved several marketers' problems.
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He confirmed that due to the intervention, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) agreed to pay the association its outstanding N10 billion as it resolved issues concerning the direct purchase of petrol from the Dangote refinery.
Fashola said the NNPC is tentatively offering to sell petrol to IPMAN at N995 per litre.
He assured the association members that, with the new ex-depot price, he would only sell petrol at a lower price than other significant marketers.
He, however, said that distance is another determining factor.
IPMAN to sell petrol at N1,200
The IPMAN official said they will sell at N1,200, depending on the location. The new price will be a small reduction, but the official stressed that trucking the product to a far distance will mean higher prices.
He could not disclose the exact price, but the association is working to adjust prices, especially in the Lagos area and other zones.
Punch reports that Fashola said that IPMAN is interested in competitive prices, stressing that the price disparity has discouraged independent marketers.
In his opinion, the difference is the reason for the petrol queues in some filling stations.
Marketers schedule meeting with Dangote refinery
Legit.ng earlier reported that IPMAN scheduled a meeting with the management of the Dangote refinery regarding direct petrol lifting from the plant.
On Sunday, October 13, the refinery also asked the Petroleum Retail Outlet Owners Association of Nigeria (PETROAN) to resend its request for direct petrol lifting.
FG gives the go-ahead to marketers to lift petrol
The development came as PETROAN expressed hope that the cost of petrol might crash in the coming days as competition in the downstream oil sector begins fully as marketers load the product from the refinery.
IPMAN described the expected agreement with the refinery as an essential step in its ongoing efforts to facilitate the lifting of petroleum products.
Legit.ng earlier reported that the Nigerian government approved marketers to begin lifting petrol directly from the Dangote Refinery without resorting to the National Petroleum Company Limited (NNPC).
Wale Edun, the Minister of Finance and Chairman of the Naira-for-Crude Sale implementation committee said marketers can now buy petrol directly from local refineries without going through intermediaries.
Marketers project new petrol prices
Punch reports that IPMAN's national publicity secretary, Chinedu Ukadike, disclosed that the association hoped to meet with officials of the Dangote refinery to discuss its upcoming robust business relationship with the $20 billion refinery.
He disclosed that IPMAN had acquired tank farms to expand its storage facilities and address a challenge that had previously hindered its operations.
The report disclosed that PETROAN President Billy Gillis-Harry disclosed that the refinery had asked his members to resend their request for petrol lifting.
Gillis-Harry expressed hope that, depending on market volatility, the product price can crash to N700 per litre. However, this does not always mean upward prices.
Regarding the N15 billion debt owed to IPMAN members, Ukadike disclosed that the NNPC boss has agreed to load all the association’s tickets in their system and unlock the money.
New fuel price expected as marketers get a refund
Legit.ng previously reported that PMAN announced that the Nigerian National Petroleum Company Limited (NNPC) had started refunding the N15 billion owed its members.
This development followed months of a pricing dispute over payments made by IPMAN members for petrol supplies.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
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Source: Legit.ng
