Read more as marketers make decision between NNPC and Dangote Refinery

• Oil marketers under the ageies of IPMAN have confirmed plans to patronise NNPC and the Dangote refinery for petrol
• The marketers said that who they will patronise will be based on the pricing from both refineries
• The association currently has more than 3000 members controlling the largest share of filling stations across the country.

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) have announced plans to source petrol from both the Nigerian National Petroleum Company (NNPC) Limited and the newly established Dangote Refinery.

According to the association, the decision will hinge on the competitive pricing each refinery offers.

Nigerians prepare to buy Dangote refinery petrol Photo credit: Benson Ibeabuchi
Source: Getty Images

IPMAN, which boasts over 3,000 members and controls a significant share of filling stations nationwide, emphasised that their choice of supplier will be driven primarily by cost considerations.

The Guardian reports that IPMAN’s National Publicity Secretary, Ukadike Chinedu, said the association is prepared to buy from either Dangote or NNPC based on the prices they offer.

Chinedu noted that the NNPC’s clarification that it is not the sole off-taker of Dangote products gives dealers the freedom to source products from any cheaper supplier.

“Now that NNPC has said they are not the sole off-taker of Dangote petrol, it means that the price of the product will determine where we are going to buy it. If NNPC imports the product and its price is cheaper than that of Dangote, we will buy from NNPC.“So, we are talking with some foreign partners because you need to understand that independent marketers are the highest buyers of diesel from the Dangote refinery because we control about 80 per cent of the filling stations nationwide,” he added. “If Dangote’s PMS is cheaper, we will buy it, but if importation is cheaper, we will go for it.”

The same position was stressed by Mustapha Zarma, IPMAN’s National Operations Controller who noted that choice will be made based on supplier that offers a better return on investment and required margins

He said:

“We may contact the refinery’s sales department this week to find out the price. If the price is competitive enough for one to buy and get his return on investment and the required margin, then we wouldn’t mind purchasing directly from him to complement what NNPC is bringing in or what NNPC would buy from Dangote."

Read more on fuel prices in Nigeria

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Protest rocks Delta over fuel price

Earlier, Legit.ng reported that youths, women, and commercial tricycle operators in Warri and Effurun metropolises of Delta state took to the streets in a peaceful protest over the persistent fuel scarcity amid the recent price hike.

The protesters marched through the major roads, calling on President Tinubu to urgently intervene and reverse the fuel price hike.

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Source: Legit.ng