How mega filling station owners intend to crash petrol prices

• Mega filling station owners have asked the NNPC to partner with them to provide petrol to the 774 local councils in Nigeria
• The Association of Mega Filling Station Owners (AMFSON) proposed the deal to NNPC in a statement
• The group said they have the presence and infrastructure to move petroleum products to all nooks and crannies of Nigeria

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The Association of Mega Filling Station Owners of Nigeria (AMFSON) has asked for a stronger partnership between the association and the Nigerian National Petroleum Company Limited (NNPC).

The group said it could move fuel to the 774 local government headquarters in Nigeria at a cheaper rate to provide the product to Nigerians at the grassroots.

Filling station owners propose new prices to NNPC Credit: Bloomberg/Contributor
Source: Getty Images

AMFSON moves to crash petrol prices

The association disclosed this in a statement to journalists in Kaduna on Monday, September 30, 2024, and signed by Davidson Ukatta, the AMFSON President, during a meeting of the group’s members.

Ukatta said filling stations owned by AMFSON members are available in all the local government councils in Nigeria, making petroleum products cheaper for Nigerians.

The statement said the NNPC management and key stakeholders in the downstream petroleum sector need to join the association as partners in progress in the search to deliver products to Nigerians cheaply.

Punch reports that the statement says that AMFSON is structured to help provide petroleum products to Nigerians, and its members are in all 774 local councils in the 36 states of Nigeria.

The group said that while the NNPC filling stations are sited in capitals, AMFSON outlets are in multiple numbers in all the local government councils.

AMFSON asks to help NNPC drive product delivery

It also said that the association is the only group that can help NNPC drive the policy behind the establishment of NNPC Retail Limited.

Marketers move to purchase petrol from Dangote refinery

The development comes as oil marketers in Nigeria are making moves to buy petrol directly from Dangote Refinery. 

The reason is a price difference between Dangote petrol price and imported PMS.

Marketers now see the NNPC as a rival

While the Dangote Refinery can supply much of Nigeria’s domestic petrol needs, the government strictly controls pricing via the Nigerian National Petroleum Company Limited (NNPC), creating a significant hurdle for marketers.

Filling stations to adjust prices as landing cost crashes

Legit.ng earlier reported that data released by the Major Energies Marketers Association of Nigeria (MEMAN) shows that the landing cost of petrol has dropped to N981 per litre.

The petrol landing cost was around N1,130 per litre in the previous weeks and dropped by over N140 as of September 25, 2024, caused by the decline in international crude oil prices.

Crude prices and foreign exchange rates are significant factors determining the cost of refined petroleum products, including diesel, aviation, and kerosene.

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Source: Legit.ng