The Nigerian National Petroleum Company Limited (NNPC) has reached an agreement to sell Premium Motor Spirit (PMS), commonly known as petrol, to members of the Independent Petroleum Marketers Association of Nigeria (IPMAN) at a price of N995 per litre. This decision comes after the intervention of the Department of State Services (DSS) to resolve ongoing tensions between the NNPC and the independent marketers.
Speaking to the press, IPMAN’s National Vice President, Hammed Fashola, explained that the involvement of the DSS played a crucial role in resolving many of the issues faced by petroleum marketers. According to him, the DSS facilitated a peaceful resolution and brought about understanding between the two parties.
“We really appreciate their intervention. They are doing their job. Anywhere they have seen that there may be a crisis, it is their duty to intervene. And their intervention brokered peace and understanding between the parties, and everybody agreed to work together,” Fashola stated.
He also confirmed that the Nigerian Midstream and Downstream Petroleum Regulatory Authority has agreed to settle an outstanding debt of N10 billion owed to IPMAN members. Furthermore, he disclosed that negotiations are ongoing concerning the direct purchase of petrol from the Dangote refinery.
When asked about the price of PMS, Fashola said, “For now, tentatively, I think they are offering us N995 per litre.”
“Our members sell at N1,200 or so and this depends on the location. I think with the N995, there will be a little reduction. Don’t forget that if you transport a product from Lagos to a far distance, you will pay for transportation and other charges.
“We want to work on that because we want to have a common ground. When we sit down and look at the price analysis offered to us, and factor in all our expenses, we want to have a uniform price as much as possible.
“So, I will not be able to tell you the exact price now, but we are working on it, especially in the Lagos axis and other zones. We will look at the transportation cost and all that. At the end of the day, we will fix the price for ourselves,” he stated.
He also addressed concerns about the recent queues at petrol stations, attributing the problem to the differences in prices. According to Fashola, the queues were not due to a shortage of petrol but were caused by customers seeking stations with lower prices. He expressed optimism that with the new price arrangement, the queues would disappear.
IPMAN is also set to meet with representatives from the Dangote refinery this week to discuss how independent marketers can directly source products from the refinery. Fashola emphasized that IPMAN is not ignoring the NNPC and will consider both the NNPC and Dangote when sourcing petrol, depending on which offers the best price.
Previously, IPMAN had raised concerns about the cost of petrol sold to them by NNPC, noting that while NNPC purchased the product from the Dangote refinery at N898 per litre, it sold it to independent marketers at prices over N1,000 per litre in different regions. This price difference had led to tensions, with IPMAN threatening to stop operations unless their grievances were addressed.
