NNPC sells PMS to IPMAN at N995 per litre after DSS intervention

The Nigerian National Petroleum Company Limited has announced the sale of Premium Motor Spirit (PMS) to the Independent Petroleum Marketers Association of Nigeria (IPMAN) at a price of N995 per litre.

The decision followed the intervention of the Department of State Services (DSS) in the ongoing dispute between the two parties.

The National Vice President of IPMAN, Hammed Fashola, confirmed that the DSS’s involvement helped resolve several issues affecting marketers.

He stated that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) agreed to pay the association’s outstanding N10 billion and addressed concerns regarding the direct purchase of petrol from Dangote Refinery.

Fashola added that the new ex-depot price of N995 would allow IPMAN members to sell petrol at rates more competitive with major marketers, although transportation costs could still influence local prices.

He noted that independent marketers had been selling petrol at prices around N1,200, depending on their 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.

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Furthermore, Fashola acknowledged that price disparities have caused fuel queues at filling stations, attributing the situation to differences in pricing between independent marketers and larger oil companies.

“The queues you see are because of that difference in prices, that’s why people are saying there are queues. There are no queues; it is the price disparity that is causing the queues. So, if there is not much difference, we have filling stations everywhere; just drive in, buy fuel, and go. But that so much difference in the price is creating that scenario of queues,” he said.

He indicated that discussions would take place with Dangote Refinery to finalise purchasing modalities following the government’s directive allowing marketers to buy petrol directly from local refineries.

The association, representing over 70 percent of filling stations nationwide, had previously objected to the pricing differences, threatening to strike and demanding refunds from the NNPC for earlier supply payments.

The IPMAN national president, Abubakar Maigandi, highlighted the challenges posed by the NNPC’s pricing, which exceeded the cost at which it purchased petrol from Dangote Refinery.