Oil marketers reveal conditions for crashing petrol prices

• Independent Petroleum Marketers Association of Nigeria (IPMAN) said it may stop operations nationwide
• The association said that the Nigerian National Petroleum Company Limited (NNPC) owe its members about N15 billion
• IPMAN said that the debt may paralyse petrol supply nationwide if the NNPC does not refund its members

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

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has threatened to stop operations nationwide due to the high cost of petrol sold to its members by the Nigerian National Petroleum Company Limited (NNPC).

The association disclosed on Thursday, October 10, 2024, that the cost of petrol from the Dangote Refinery was about N987 per litre, noting that the state oil company sold the product to marketers at N1,010 per litre in Lagos.

Independent petroleum marketers ready to action against NNPC Credit: Bloomberg/Contributors
Source: Getty Images

Marketers are still loading subsidised petrol

IPMAN threatened to embark on strike, demanding a refund from NNPC for earlier petrol supply payments made by its members.

Analysts believe the situation could worsen the petrol scarcity and queues nationwide.

Punch reports that on Thursday, October 10, 2024, Major Energies Marketers Association of Nigeria (MEMAN) loaded subsidised petrol from Dangote Refinery on earlier arrangements with the NNPC.

Punch reports that Chinedu Ukadike, IPMAN's national publicity secretary, said the association may be forced to take action if the issue with NNPC is not resolved.

The national president of IPMAN, Abubakar Maigandi, disclosed that NNPC asked its members to buy petrol from its depot in Lagos at N1,010 per litre.

He stated that the price was higher than what NNPC paid for the product at the Dangote Refinery.

IPMAN demands a N15 billion refunds from NNPC

Maigandi said NNPC had withheld members' funds for about three months.

He noted that NNPC purchased the product from Dangote at N897 per litre but is asking marketers to buy it at N1,010 per litre in Lagos, N1,045 in Calabar, and N1,050 in Port Harcourt, and N1,040 in Warri.

The IPMAN president said the association’s funds with the NNPC are about N15 billion, and marketers were desperate to be involved in the petrol business and its components.

Landing costs crashes

Legit.ng earlier reported that the NNPC raised the petrol price to N1,030 per litre from N897 in Abuja and N987 in Lagos.

Meanwhile, MEMAN said NNPC does not owe it to its members as it owns large stock and storage systems to curb sudden changes in petrol prices.

Clement Isong, the executive secretary of MEMAN, attributed the situation to the association’s relationship with the national oil firm.

MEMAN members disclosed that they were still loading subsidised petrol from the Dangote refinery, which they paid for earlier via the NNPC.

Major marketers disclosed that the NNPC sold petrol at N766 per litre when it lifted the product from the mega refinery.

A previous report by Legit.ng said that the landing cost of petrol dropped to N975.89 per litre. The information is based on the data released by MEMAN.

Azikiel Refinery concludes plans to roll out petrol

Legit.ng earlier reported that the president of Azikel Group, operators of the Azikel Modular Refinery in Bayelsa, Azibapu Erunani, has disclosed that the facility is unique as it is the only one in Sub-Saharan Africa to refine condensate in addition to petrol, diesel, and aviation fuel.

He disclosed this on Tuesday, October 8, 2024, when the Bayelsa State governor, Duoye Diri, visited the refinery complex in Yenogoa.

Erunani said the facility is worth over $850 million and has about 400 foreign and local employees.

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Source: Legit.ng