Petrol hike: NNPC bought fuel below N900 from Dangote refinery, yet wants to sell above N1,000 — Marketers

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has criticized the recent hike in petrol prices, accusing the national oil company, NNPC, of wanting to sell fuel to them at over N1,000 per liter while purchasing it for less than N900 from the Dangote refinery.

The national president of IPMAN, Abubakar Garima, stated in an interview on Thursday that marketers have been unable to access petroleum products from NNPC since the price hike, despite having made down payments.

Garima explained that NNPC sourced products 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.

He called on the national oil company to sell at the same rate they purchased from the Dangote refinery to foster competition in pricing or to refund the marketers’ payments.

“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.

Complete Deregulation of Downstream Sector  

In addition, the IPMAN president stated that the recent price adjustment signals a full deregulation of the downstream sector.

He noted that with the deregulation, and NNPC no longer being the sole importer of petrol or the exclusive off-taker from the Dangote refinery, competition is expected to emerge in the sector.

He added that marketers now have the opportunity to source 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.

What you should know 

Nairametrics previously reported that the Nigerian National Petroleum Corporation (NNPC) Limited has raised the price of petrol, with costs reaching approximately N998 in Lagos and N1,030 in the capital city, Abuja.

This marks the second price increase by NNPC in less than two months.

The latest hike follows indications that NNPCL would withdraw as an intermediary in the Dangote Refinery purchase deal, raising concerns about potential future price increases.

Fuel prices have been steadily rising as a result of the gradual phasing out of petrol subsidies, while the government continues to struggle with regulating petrol supply to marketers and filling stations.