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Enioluwa Adeniyi
Guest
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) at ₦995 per litre.
This development follows the intervention of the Department of State Services (DSS) in the ongoing controversy between the two parties.
In an interview with Punch, the National Vice President of IPMAN, Hammed Fashola, expressed gratitude for the DSS’s involvement, stating that their intervention has significantly alleviated many of the challenges faced by marketers.
Additionally, Fashola confirmed that through the DSS’s efforts, the Nigerian Midstream and Downstream Petroleum Regulatory Authority has agreed to settle IPMAN’s outstanding ₦10 billion, while also addressing issues related to the direct purchase of petrol from the Dangote refinery.
Fashola stated, “We really appreciate their intervention. They are doing their job. Anywhere they have seen that there may be a crisis, it is their duty to intervene. And their intervention brokered peace and understanding between the parties, and everybody agreed to work together.”
Asked to disclose how much the NNPC will sell PMS to IPMAN, he replied, “For now, tentatively, I think they are offering us ₦995 per litre.”
With the ₦995 ex-depot price, Fashola assured that IPMAN members would no longer sell at prices much higher than that of major marketers, saying, however, that distance is another factor for pricey PMS.
“Our members sell at ₦1,200 or so and this depends on the location. I think with the ₦995, there will be a little reduction. Don’t forget that if you transport a product from Lagos to a far distance, you will pay for transportation and other charges.
“We want to work on that because we want to have a common ground. When we sit down and look at the price analysis offered to us, and factor in all our expenses, we want to have a uniform price as much as possible.
“So, I will not be able to tell you the exact price now, but we are working on it, especially in the Lagos axis and other zones. We will look at the transportation cost and all that. At the end of the day, we will fix the price for ourselves,” he stated.
The IPMAN leader emphasised that IPMAN is interested in competitive prices, saying the price disparity has been a disadvantage to independent marketers.
“The price disparity has been a disadvantage between us and the NNPC Retail and major marketers. So, we are trying to look at how to close that gap so that we come back fully into the business. The lack of direct supply has been our problem, and now that we are solving that problem, I don’t think that disparity will be there again,” he stressed.
Fashola explained that the price differential is the reason for the queues in some filling stations in the cities.
“The queues you see are because of that difference in prices, that’s why people are saying there are queues. There are no queues; it is the price disparity that is causing the queues. So, if there is not much difference, we have filling stations everywhere; just drive in, buy fuel, and go. But that so much difference in the price is creating that scenario of queues,” he narrated.
Reacting to the directive that marketers can buy petrol directly from local refineries, Fashola said the association would meet with Dangote this week.
“For now, we intend to meet with Dangote this week to see how we work out the modalities and all that. The Federal Government has given a directive and we want to take full advantage of that,” he disclosed.
The IPMAN vice president stressed that the association is not ignoring the NNPC either, as it would patronise the best price.
He added, “At the same time too, we are not ignoring NNPC. So, whichever way, we are ready to do business with NNPC. It depends on the price, we go for the best.”
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