Petrol hike: Marketers ask NNPC to sell fuel to them at price they purchase from Dangote refinery

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has accused the national oil company, NNPC, of selling fuel to them at over N1,000 per liter while purchasing it for less than N900 from the Dangote refinery.

IPMAN’s national president, Abubakar Garima, stated in an interview on Thursday, October 10 that marketers have been unable to access petroleum products from NNPC since the new price hike, despite having made down payments for the product.

Garima explained that NNPC bought PMS from the Dangote refinery at a rate below N900 but then try to sell to marketers at a higher rate, ranging from N1,010 to N1,050 which will definitely lead to a price hike.

“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.

In addition, the IPMAN president stated that the recent price adjustment means there is now a full deregulation of the downstream sector meaning that the NNPC is no longer being the sole importer of petrol or the exclusive off-taker from the Dangote refinery which will in turn fuel competition.

He added that marketers now have the opportunity to buy their petrol, either through direct importation or purchases 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,” he added.