The Nigerian National Petroleum Limited Company (NNPCL) has officially allowed oil marketers, represented by the Independent Petroleum Marketers Association of Nigeria (IPMAN), to begin lifting Premium Motor Spirit (petrol) from its depot at a reduced price.
Additionally, the Nigerian Midstream and Downstream Petroleum Regulatory Authority is set to issue import and off-taker licenses to these oil dealers, enabling them to either import fuel directly or purchase it from the Dangote Refinery.
This initiative is part of the government’s strategy to fully deregulate the oil sector.
This decision followed IPMAN’s threat to halt operations nationwide due to the escalating costs of loading petroleum products from NNPCL facilities.
According to IPMAN, while the cost of petrol from the Dangote Petroleum Refinery to NNPC is approximately N898 per litre, NNPC has been selling the same product to independent marketers at N1,010 per litre in Lagos.
The association, which oversees more than 70 percent of filling stations across the country, expressed strong opposition to the pricing and threatened to halt operations.
They also demanded a refund from the NNPC for previous payments made by their members for petrol supplies.
During a live television interview on Thursday, IPMAN’s national president, Abubakar Maigandi, highlighted that the price set by NNPC was higher than what the corporation itself paid for the product from the Dangote refinery.
He also pointed out that independent marketers had their funds held by the national oil company for approximately three months.
According to him, NNPC acquires the product from the refinery at N898 per litre but is selling it to marketers at N1,010 per litre in Lagos, N1,045 in Calabar, N1,050 in Port Harcourt, and N1,040 in Warri.
“Our major challenge now is that independent marketers have an outstanding debt from the NNPC and the company collected products through Dangote at a lower rate, which is not up to N900, but they are telling us now to buy this product from them at the price of N1,010/litre in Lagos; N1,045 in Calabar; N1,050 in Port-Harcourt; and N1,040 in Warri,” Maigandi stated.
Following a recent peace meeting facilitated by Adeola Ajayi, the Director General of the Department of State Services, a new agreement has been established.
The national oil company has agreed to allow the loading of products to address the N15 billion owed to the marketers.
Chinedu Ukadike, the National Publicity Secretary of IPMAN, shared this information in an interview with a major news agency.
He noted that the meeting included a director from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Group Chief Executive Officer of NNPCL, Mele Kyari, which facilitated the necessary adjustments for independent marketers to begin loading products.
He said, “We were invited by the Director of the Department of State Services to resolve the ongoing issue between the association and the NNPCL.
“The meeting was on the non-compliance of selling PMS to IPMAN by Dangote Refinery and the problem we are having with NNPCL in terms of pricing. Based on this, the director of DSS invited us and brokered peace.
“Among what was agreed upon after a meditation process led by our National President Abubakar Maigandi, NNPCL has agreed to make some reductions and allow independent marketers to load out those tickets that amount to N15bn immediately.”
Ukadike also mentioned that the NMDPRA has agreed to issue import licenses to IPMAN, enabling the association to fully embrace deregulation in the sector.
However, when contacted, the NMDPRA spokesperson, George Ene-Ita, stated that he was not aware of the meeting.”I am sorry, I am not aware of any meeting or license approval. I was not part of it.”
Meanwhile, the NMPDRA has resolved to make a payment of N10bn to the oil marketers as outstanding payments under the Petroleum Equalisation Fund.
