Fuel Price Hike: IPMAN Plans to Stop Operations

The Independent Petroleum Marketers Association of Nigeria has threatened to stop operations nationwide, to protest the high cost of petrol being sold to its members by the Nigerian National Petroleum Company Limited.

IPMAN 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 product to independent marketers at N1,010/litre in Lagos.

Members of the association, who make up over 70 percent of fuel station ownership nationwide, kicked against the price hike and threatened to down tools.

The Association also demanded a refund from NNPC for earlier petrol supply payments made by its members.

National Publicity Secretary of IPMAN, Chinedu Ukadike, said the association may be forced to take action if the challenge is not resolved immediately.

Also, IPMAN says efforts to reach Dangote for direct loading were in progress and a meeting between both parties is expected to hold soon.

Ukadike also disclosed that its marketers would sell at a lower rate of N970/litre if allowed to purchase products directly from the refinery.

The IPMAN official added, “Any moment from now, Dangote will invite us, from the fillers we have received.”

Earlier, IPMAN National President, Abubakar Maigandi, noted that NNPC was asking independent marketers to buy petroleum products from its depot at N1,010/litre in Lagos State.

Maigandi, who spoke during a live television interview on Thursday, argued that the price was higher than what NNPC paid for the product from the Dangote refinery.

He also noted that independent marketers’ funds had been held by the national oil company for about three months.

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.

“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”, Maigandi stated.

He also pointed out that the association’s funds with NNPC had reached N15bn, stressing that marketers were eager to be fully involved in the petrol business and its components following the full deregulation of the sector.

He added, “Marketers want to be fully engaged in the business of petrol and its components. NNPC has been the one bringing in the product and loading and has an off-take in the Dangote refinery.

“We are now being allowed to import and there is no challenge on that issue. What we are after is to get the product directly from Dangote and not through NNPC. Currently, they owe us up to N15bn.”

On Wednesday, NNPC raised the price of petrol at its retail outlets to N1,030 from N897/litre in Abuja, and N998/litre from N868/litre in Lagos with other locations witnessing similar price hikes accordingly.

Other retail outlets have also hiked prices to around N1200 per liter, a development that has triggered lamentations among Nigerians.

The price hike, the second in one month, represents about 14.8 percent or N133 rise.

Meanwhile, the Nigeria Labour Congress and the Organised Private Sector has called for the reversal of the hike in the pump prices.

Punch/Hauwa Abu