The Department of State Services (DSS) has successfully mediated a dispute between the Nigerian National Petroleum Company Limited (NNPCL) and the Independent Petroleum Marketers Association of Nigeria (IPMAN).
The conflict arose due to the high cost of purchasing Premium Motor Spirit (PMS), commonly known as petrol, from NNPCL depots.
Oil marketers under IPMAN had threatened to halt operations across the country, protesting the significant price difference between what NNPCL paid for fuel and what it charged independent marketers.
According to IPMAN, NNPCL purchased petrol from the Dangote Refinery at N898 per litre but sold it to marketers at a much higher price of N1,010 per litre in Lagos, with even higher prices in other regions such as Calabar, Port Harcourt, and Warri.
This significant price discrepancy led to tensions between the two parties, with IPMAN calling for a resolution and even demanding refunds for prior payments made for fuel supplies. The association, which controls over 70% of the filling stations nationwide, argued that the NNPCL was unfairly marking up prices and holding onto funds owed to its members for about three months.
The situation escalated when IPMAN President Abubakar Maigandi expressed frustration during a television interview, highlighting that the association’s major concern was the NNPCL’s refusal to sell the product at the same price it acquired it from the refinery.
“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,”
In response to the growing tensions, DSS Director General Adeola Ajayi facilitated a peace meeting between the key stakeholders.
The meeting included top officials such as NNPCL’s Group Chief Executive Officer, Mele Kyari, and a director from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). This meeting led to a significant breakthrough.
Following the discussions, NNPCL agreed to allow oil marketers to lift products and offset the N15 billion it owed them.
Furthermore, the NMDPRA committed to issuing import and off-taker licenses to IPMAN, enabling the marketers to either import fuel directly or buy it from the Dangote Refinery.
Speaking about the outcome, IPMAN’s National Publicity Secretary, Chinedu Ukadike, 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.”
