NNPC charges IPMAN N995 per litre for PMS.
Members of the Independent Petroleum Marketers Association of Nigeria will be able to purchase Premium Motor Spirit (petrol) from the Nigerian National Petroleum Company Limited for N995 per litre.
As a result of the Department of State Services getting involved in the dispute, this happened.
According to IPMAN’s National Vice President Hammed Fashola, who spoke with our reporter, the DSS’s intervention resolved numerous issues that marketers were facing.
While resolving concerns over the direct purchase of fuel from the Dangote refinery, Fashola also stated that the Nigerian Midstream and Downstream Petroleum Regulatory Authority agreed to pay the association’s unpaid balance of N10 billion. This agreement was reached through their participation.
Their intervention is greatly appreciated. Their task is being done. They have to step in when they perceive a problem. As far as Fashola is concerned, they intervened to bring the parties together, and as a result, everyone committed to working together.
When asked about the price of PMS that the NNPC would sell to IPMAN, he said, “At this point, I am thinking they are offering us N995 per litre.”
Fashola promised that IPMAN members will stop selling at prices that were much more than large marketers with the N995 ex-depot pricing. On the other hand, he did mention that distance is a factor that adds to the high cost of PMS.
Depending on where you are, our members sell for around N1,200. The N995 will, in my opinion, cause a small drop in price. Transportation and other fees will need to be covered if you are shipping a goods from Lagos to an extended distance.
“We aim to address this issue in order to establish a shared understanding.” Our objective is to get a consistent pricing after reviewing the offered price analysis and taking all of our expenses into consideration.
We will include transportation costs and all that, but I can’t give you a specific figure right now. We’re working on it, especially in the Lagos axis and other zones. “In the end, we’ll decide on the price ourselves,” he declared.
According to the IPMAN chief, independent marketers have suffered due to the price gap, hence he is keen on competitive pricing.
Our company has been at a disadvantage in comparison to NNPC Retail and other big marketers due to the wide price gap. So, we’re looking into options to close the deficit and get back into the fold. I don’t think that disparity will be there again now that we have solved the absence of direct supply,” he added.
According to Fashola, the price difference is the main cause of the lines at some city gas stations.
“The difference in prices is causing the queues you see, which is why people are reporting them.” There aren’t really any lines; rather, the variance in prices is what causes them. So, if there isn’t much of a difference, we have gas stations all over the place; all you have to do is drive in, get some gas, and go. But, he continued, lineups are forming due to the substantial price discrepancy.
In response to the order allowing marketers to purchase petrol straight from regional refineries, Fashola announced that this week the association would meet with Dangote.
Meeting with Dangote this week to go over the details and modalities is our current agenda. “The federal government has issued a directive, and our goal is to make the most of it,” he said.
In addition to not ignoring the NNPC, the IPMAN VP emphasised that the group would patronise the best pricing.
“At the same time, we are not overlooking NNPC.” Consequently, we are ready to do business with NNPC no matter what. We choose the best option based on price.
IPMAN had revealed on Thursday that the cost of petrol from the Dangote Petroleum Refinery to NNPC was about N898/litre, but noted that NNPC was selling the same product to independent marketers at N1,010/litre in Lagos.
The group, which has influence over 70% of petrol stations in the country, voiced its disapproval and threatened to cut off tools if this continued. In addition, the group wanted NNPC to reimburse its members for money they had already paid for petrol.
During a live television appearance on Thursday, IPMAN national president Abubakar Maigandi said that the price was greater than what the NNPC paid for the goods from the Dangote refinery.
He went on to say that for the past three months, the national oil company had been secretly keeping the money of independent marketers.
According to him, NNPC purchased the product from the refinery at N898/litre but is asking marketers to buy it at N1,010/litre in Lagos; N1,045 in Calabar; N1,050 in Port Harcourt; and N1,040 in Warri.
A big problem right now, according to Maigandi, is that NNPC has outstanding debts from independent traders. Through Dangote, the company was able to collect products at a reduced rate, below N900. However, they are now telling us 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.”