See new fuel price as NNPC, Marketers reach agreement, begin loading

• Oil marketers and NNPC have reached an agreement in the ex-depot price of petrol after weeks of negotiation
• The agreement was reached by two parties following the intervention of the Department of State Services
• Although not much price reduction is expected at filling stations, the agreement will help eliminate fuel queues

The Nigerian National Petroleum Company Limited (NNPC) has agreed to lower the ex-depot price of petrol to N955 per litre for the Independent Petroleum Marketers Association of Nigeria (IPMAN)

The development was confirmed by Abubakar Maigandi, President of IPMAN, following negotiation.

New petrol price at filling stations Photo credit: Benson Ibeabuchi
Source: Getty Images

This decision will now pave the way for the resumption of fuel loading at depots across the country.

Legit.ng had reported that IPMAN and NNPC limited were at loggerheads over the ex-depot pricing of the Dangote refinery petrol, which was set at N1,010 in Lagos.

IPMAN accused NNPC of increasing its prices to a rate higher than the rate at which NNPC purchased from the Dangote Refinery.

The decision forced IPMAN members to demand a refund of the deposit already to NNPCL for the product.

New ex-depot petrol price

Maigandi, President of IPMAN, disclosed to TheCable that the national oil company has reduced the ex-depot price to N955 per litre.

Updating on the resolution, Maigandi mentioned that the Department of State Services (DSS) intervened in the dispute, prompting NNPC to revise the price downwards.

“In Lagos, they are giving us the product at the rate of N995 per litre as loading price. When they start loading today and tomorrow, the product will be available.”

Commenting on the announcement that the NNPC will no longer serve as the official intermediary for petrol supply from the Dangote refinery to oil marketers, Maigandi stated that negotiations between the parties are still ongoing, according to BusinessDay.

He said

“Immediately we finalise our negotiations, we are going to start loading our products directly from Dangote”.

FG approves oil marketers buying Dangote petrol

Legit.ng earlier reported that the Nigerian government directed petroleum marketers to lift petroleum products, especially PMS, from the Dangote Refinery.

The government’s approval ends the Nigerian National Petroleum Company Limited's (NNPC) role as the sole distributor of the refinery’s petrol, leading to the total deregulation of the downstream oil sector.

Wale Edun, chairman of the Naira-For-Crude Sale Implementation Committee and minister of Finance, said the development is part of the government’s bigger plan to deregulate the petroleum market and encourage competition.

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Source: Legit.ng