New Fuel Price Expected as Marketers Get Refund, Begin Talks With Dangote Refinery
- NNPC Limited has reached an agreement with oil marketers on the refund of N15 billion owed for petrol supply
- The refunds will now allow marketers to focus on negotiating directly with local refineries, including Dangote, for petrol
- NNPC and independent marketers have been locked in disagreement on the pricing of petrol before the DSS intervention
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has announced that the Nigerian National Petroleum Company Limited (NNPC) has started refunding the N15 billion owed its members.
Source: Getty Images
This development follows months of a pricing dispute over payments made by IPMAN members for petrol supplies.
Legit.ng earlier reported that IPMAN accused NNPC Limited of attempting to sell petrol to its members at a higher price than what they had previously paid.
The standoff has resulted in many filling stations across the country being shut down.
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IPMAN confirms payments after DSS intervention
ThisDay reports that Chinedu Ukadike, IPMAN spokesman, said the refund process began after the intervention of the Department of State Service (DSS).
The report noted that the DSS brokered a peace deal between the parties involved.
He said:
"We attended a meeting with the DSS Director who intervened in our matter.
"The refund process is underway, with NNPC returning funds to individual marketers' wallets."
He also revealed that a direct purchase from the Dangote refinery will now be made.
He added:
"The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has agreed to issue licenses to marketers for direct off-take from the Dangote refinery.
"This move aligns with Nigeria's deregulated downstream market, granting eligible firms the capacity to import petrol directly."
New petrol price expected
Ukadike also disclosed that NMDPRA has approved N10 billion to settle outstanding payments under the Petroleum Equalisation Fund (PEF) owed to IPMAN.
He added:
"NNPC has also agreed to reduce the selling price to marketers from N1,040 per litre to about N1,000."
Ukadike also mentioned that there is ongoing discussions to establish pricing terms with the Dangote refinery.
FG approves oil marketers buying Dangote petrol
Legit.ng earlier reported On Friday, October 11, 2024, the Nigerian government directed petroleum marketers to lift petroleum products, especially PMS, from the Dangote Refinery.
The government’s approval ends the Nigerian National Petroleum Company Limited's (NNPC) role as the sole distributor of the refinery’s petrol, leading to the total deregulation of the downstream oil sector.
Wale Edun, chairman of the Naira-For-Crude Sale Implementation Committee and minister of Finance, said the development is part of the government’s bigger plan to deregulate the petroleum market and encourage competition.
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Source: Legit.ng
