The Independent Petroleum Marketers Association of Nigeria (IPMAN) has criticised the Wednesday (yesterday, October 9) increase in petrol prices, accusing the national oil company, NNPC Limited (NNPCL), of attempting to sell fuel to them at rates exceeding N1,000 per litre, while they are able to acquire it for less than N900 from the Dangote refinery.
During an interview on Thursday, Abubakar Garima, the national president of IPMAN, revealed that since the price hike, marketers have faced difficulties in accessing petroleum products from NNPCL, despite having already made advance payments.
He elaborated that although NNPCL obtains products from the Dangote refinery at a cost lower than N900, they are attempting to resell it to marketers at significantly higher prices, ranging from N1,010 to N1,050 per litre.
Garima urged the national oil company to either sell the products at the same rate they purchase them from the Dangote refinery or refund the payments made by marketers.
“As independent petroleum marketers, we are already burdened with outstanding debts owed by NNPCL. They procure products from Dangote at a price below N900 but are instructing us to purchase them at exorbitant rates—N1,110 in Lagos, N1,045 in Calabar, N1,040 in Port Harcourt, and N1,050 in Warri,” he stated.
He further emphasized that their funds are currently held by NNPCL, insisting that they should either sell the products at the same price as Dangote or return the marketers’ money to their respective accounts.
“We are requesting them to offer the products at the same price Dangote does. We are all Nigerians here. If they were to sell at Dangote’s rate, we could then price our fuel around N1,020 or N1,010, fostering a competitive market. Every little reduction in price makes a significant difference,” Garima added.
In addition, Garima mentioned that the recent price changes indicate a move towards the full deregulation of the downstream petroleum sector. He pointed out that with the deregulation, NNPC is no longer the sole importer of petrol or the exclusive buyer from the Dangote refinery, which should lead to increased competition within the industry.
He further explained that marketers now have the flexibility to source their petrol independently, either through direct imports or purchases from the Dangote refinery.
“With the complete deregulation of the downstream sector, we independent marketers will be fully involved in the business. Previously, only NNPC was responsible for bringing in these products,” he noted.
He also added that NNPC was the only entity allowed to make purchases from the Dangote refinery. However, under the new arrangement, independent marketers can now use any vessel to import fuel themselves.
“The challenges we faced arose from the fact that only NNPC was authorized to import petrol and was the exclusive buyer from Dangote refinery. Now, with Dangote able to transact in naira and sell directly, we can procure products from him without going through NNPC,” Garima concluded.
