See NNPC reaction to new fuel price agreement with oil marketers

• The NNPCL has reacted to reports that a pricing agreement has been struck with the Independent Petroleum Marketers.
• The price agreement was reportedly reached following the intervention of the Department of State Services.
• Oil marketers and the NNPCL have been at loggerheads over the pricing of petrol lifted from the Dangote Refinery

The Nigerian National Petroleum Company Limited (NNPCL) has clarified the N955 per litre petrol pricing agreement reached with the Independent Petroleum Marketers Association of Nigeria (IPMAN).

According to Olufemi Soneye, NNPCL’s Chief Corporate Communications Officer, the agreement is a one-time discount that should not be mistaken for a permanent price reduction.

NNPC has clarified its position on petrol pricing in Nigeria Photo credit: Bloomberg/contributor
Source: UGC

The Cable had quoted Abubakar Maigandi, IPMAN President, in a report that NNPCL had agreed to lower the ex-depot price of petrol for its member N955 per litre.

The development came after Maigandi accused the NNPCL of trying to sell petrol lifted from Dangote refinery at N1,010.

The price disagreement led to IPMAN demanding refunds from the NNPCL before the Department of State Service intervention.

NNPC clarifies pricing agreement

Speaking further, Soneye explained that the ex-depot price NNPC had only offered a temporary N3 discount to marketers with funds deposited at NNPC for fuel lifting to ease distribution challenges and prevent potential shortages, Vanguard reported.

Soneye stressed that Nigeria's fuel prices are now governed by market forces under the deregulation framework of the Petroluem Industry Act and dismissed suggestions of a fixed price agreement with marketers.

Soneye said:

"NNPC had only offered a temporary N3 discount to marketers with funds deposited at NNPC for fuel lifting to ease distribution challenges and prevent potential shortages.“There is no price agreement between IPMAN, NNPC, or any marketer. The market forces determine prices under the current deregulated regime."

FG approves oil marketers buying Dangote petrol

Legit.ng earlier reported On Friday, October 11, 2024, 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