Petrol Price: IPMAN To Choose Between NNPC and Dangote Refinery
- Oil marketers under the ageies of IPMAN have confirmed plans to patronise NNPC and the Dangote refinery for petrol
- The marketers said that who they will patronise will be based on the pricing from both refineries
- The association currently has over 3000 members controlling the largest share of filling stations nationwide.
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Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) have announced plans to source petrol from the Nigerian National Petroleum Company (NNPC) Limited and the newly established Dangote Refinery.
According to the association, the decision will hinge on each NNPC's and Dangote refinery pricing.
Source: Getty Images
IPMAN boasts over 3,000 members and controls a significant share of filling stations nationwide.
IPMAN to choose between NNPC and Dangote refinery
The Guardian reports that IPMAN’s National Publicity Secretary, Ukadike Chinedu, said the association is prepared to buy from Dangote or NNPC based on their offered prices.
Chinedu noted that the NNPC’s clarification that it is not the sole off-taker of Dangote products gives dealers the freedom to source products from any cheaper supplier.
“Since NNPC has stated they are not the exclusive purchaser of Dangote petrol, our buying decision will be based on price. If NNPC imports petrol at a lower cost than Dangote, we will purchase from NNPC.
"We are also engaging with foreign partners, as independent marketers are major buyers of diesel from Dangote, controlling about 80 percent of filling stations nationwide. If Dangote's petrol is cheaper, we'll buy it; otherwise, we’ll opt for imports.”
The exact position was stressed by Mustapha Zarma, IPMAN’s National Operations Controller, who noted that choice will be made based on a supplier that offers a better return on investment and required margins
He said:
“We may reach out to the refinery’s sales department this week to check the price. If it’s competitive enough to ensure a good return on investment and margin, we might purchase directly from them to complement what NNPC imports or buys from Dangote.”
Read more on fuel prices in Nigeria
Fuel scarcities, price hike deepen Nigerian frustrations
NNPCL speaks on new fuel prices at filling stations, presidency explains decision
Presidency speaks on petrol price increase, subsidy payment after Dangote fuel
Protest rocks Delta over fuel price
Earlier, Legit.ng reported that youths, women, and commercial tricycle operators in Warri and Effurun metropolises of Delta state took to the streets in a peaceful protest over the persistent fuel scarcity amid the recent price hike.
The protesters marched through the major roads, calling President Tinubu to urgently intervene and reverse the fuel price hike.
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Source: Legit.ng
