The Independent Petroleum Marketers Association of Nigeria has condemned the recent increase in petrol prices, claiming that the national oil company, NNPC, intends to sell fuel to them for over N1,000 per liter while acquiring it for under N900 from the Dangote refinery.
The national president of IPMAN, Abubakar Garima, revealed in an interview on Thursday that marketers have been unable to access petroleum products from NNPC since the price hike, despite having already made down payments.
Garima explained that while NNPC sources products from the Dangote refinery at a rate below N900, it attempts to sell to marketers at a higher price, ranging from N1,010 to N1,050 per litre.
He urged the national oil company to sell at the same rate it purchases from the Dangote refinery to promote fair competition in pricing, or to refund the payments made by the marketers.
“As Independent Petroleum Marketers, we already have an outstanding debt by the NNPCL. NNPCL collected products through Dangote at a lower rate, which is not up to N900. But they are telling us to go and buy this product from them at the rate of N1,110 in Lagos, N1,045 in Calabar, N1,040 in Port Harcourt, N1050 in Warri.
“Our money is with them. We tell them that they should rather sell it at the rate Dangote is selling it or they should return our money back to our various accounts. We are asking them to sell it the way Dangote is selling. We are Nigerians like they are.
“If they sell it the same way Dangote is selling, we may decide to sell our own at N1,020 or N1,010 and create some kind of competition. Because any reduction in money is a difference,” Garima said.
Additionally, the IPMAN president stated that the recent price adjustment indicates a full deregulation of the downstream sector.
He noted that with NNPC no longer acting as the sole importer of petrol or the exclusive off-taker from the Dangote refinery, increased competition is anticipated in the sector.
He emphasized that marketers now have the opportunity to source their petrol either through direct imports or by purchasing from the Dangote refinery.
“Now that the downstream sector is fully deregulated, we independent marketers will be fully engaged in the business. Before it was only NNPC bringing this product.
“At the same time, it’s only NNPC that has an offtake in Dangote refinery. We can use any vessel because we are allowed to go and import ourselves.
“Normally, the reason we have a lot of challenges is because before it’s only NNPC that is allowed to bring it, and the only one that are able to buy from Dangote refinery. But with this current arrangement whereby Dangote will buy in naira and sell in naira, Dangote will give us this product directly, not through the NNPC,” Garima added.
It has been reported that the Nigerian National Petroleum Corporation Limited has raised petrol prices, with costs reaching around N998 in Lagos and N1,030 in Abuja.
This represents the second price increase by NNPC in less than two months.
