IPMAN Chair: NNPC Selling Petrol To Marketers At N1,010 Per Litre

The National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Abubakar Garima, has expressed concerns over the pricing strategy of the Nigerian National Petroleum Company Limited (NNPCL), which is currently selling petroleum products to oil marketers at significantly higher rates than what it paid to purchase from the Dangote Refinery. Speaking on Channels TV’s Sunrise Daily, Garima revealed that NNPCL is offering petrol to marketers at N1,010 per litre in Lagos, while purchasing the same product from the Dangote Refinery for between N800 and N900 per litre. Prices are even higher in other locations, including N1,045 in Calabar, N1,050 in Port Harcourt, and N1,040 in Warri.

This revelation came just after NNPC retail stations raised petrol prices to N1,030 per litre in Abuja and N998 per litre in Lagos, sparking public outrage. The latest price hikes, which took place within a month, represent an increase of about 14.8 percent. Since the current administration took office less than 17 months ago, the price of petrol has surged by over 430 percent.

Garima attributed the rising fuel prices to the ongoing deregulation of the oil sector, stating, “We cannot call it an increase, but rather, the removal of subsidy under deregulation.” Despite initial expectations that fuel prices would drop following the naira-for-crude sales initiative, prices have continued to climb due to the full implementation of deregulation.

One of the major challenges facing independent marketers is their inability to access products directly from the Dangote Refinery at the lower rates NNPCL is paying. According to Garima, marketers have already paid for products through NNPCL, which is now demanding higher prices, despite purchasing the fuel at a cheaper rate. Marketers are seeking refunds of their payments, some of which have been with NNPCL for as long as three months, so they can approach Dangote directly for their supply.

Garima emphasized that NNPCL’s current pricing would lead to a significant disparity, as the state oil company could sell at a much higher profit margin while marketers would face inflated costs. “We have refused to buy at the inflated price because NNPCL is making over N100 profit per litre,” Garima noted.

He also pointed out that independent marketers want to be fully involved in the petrol business, including imports, and are requesting access to purchase directly from the Dangote Refinery, bypassing NNPCL. Garima revealed that NNPCL currently owes marketers up to N15 billion, further complicating the situation and contributing to fuel scarcity across the country. Negotiations are ongoing to resolve the issue.