IPMAN Accuses NNPC of Price Discrepancies in Fuel Sales

 

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has raised concerns over alleged price discrepancies in fuel sales, accusing the national oil company, the Nigerian National Petroleum Corporation Limited (NNPCL), of selling petrol to marketers at prices exceeding N1,000 per liter while purchasing it for less than N900 from the Dangote refinery.

In an interview on Thursday, October 10, IPMAN’s national president, Abubakar Garima, revealed that marketers have faced significant challenges in accessing petroleum products from NNPC since the recent price increase. Despite having made advance payments, marketers have been unable to obtain fuel.

Garima explained that while NNPC procures Premium Motor Spirit (PMS) from the Dangote refinery at a rate below N900, it has been selling it to marketers at inflated prices ranging from N1,010 to N1,050 per liter. He expressed concerns that such pricing practices will inevitably lead to further price hikes for consumers.

“As independent petroleum marketers, we already have an outstanding debt with the NNPCL. They collected products from Dangote at a lower rate, but they are instructing us to purchase the same products at prices up to N1,110 in Lagos, N1,045 in Calabar, N1,040 in Port Harcourt, and N1,050 in Warri,” Garima stated.

He emphasized the urgency for NNPC to adjust its pricing or return the funds to marketers’ accounts. “We are urging them to sell at the same rate as Dangote. If they do, we might consider selling at N1,020 or N1,010 to foster competition,” he added.

Furthermore, Garima noted that the recent price adjustment reflects a full deregulation of the downstream sector, indicating that NNPC is no longer the sole importer of petrol or the exclusive off-taker from the Dangote refinery. This change opens the market to competition, allowing marketers to source petrol either through direct importation or purchases from the Dangote refinery.

“With the deregulation of the downstream sector, we independent marketers will be fully engaged in the business. Previously, only NNPC could bring in products,” Garima said. “Now, with the ability to import and purchase directly from Dangote, we anticipate a more competitive landscape.”

The IPMAN president's comments highlight ongoing frustrations within the sector and the potential for changes in pricing and supply dynamics in Nigeria's fuel market.