See why new fuel price is expected after NNPC and marketers reaches agreement

• NNPC limited has reached an agreement with oil marketers on the refund ofN15 billion owed for petrol supply
• The refunds will now allow marketers to focus to negotiate directly with local refineries, including Dangote for petrol
• NNPC and independent marketers have been locked in disagreement on the pricing of petrol before DSS intervention

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has announced that the Nigerian National Petroleum Company Limited (NNPC) had started refunding the N15 billion owed its members.

Hope for lower petrol prices Photo credit: Bloomberg/contributor
Source: Getty Images

This development follows months of a pricing dispute over payments made by IPMAN members for petrol supplies.

Legit.ng earlier reported that IPMAN accused NNPC Limited of attempting to sell petrol to its members at a higher price than what they had previously paid.

The standoff has resulted in many filling stations across the country being shut down.

IPMAN confirms payments after DSS intervention

ThisDay reports that Chinedu Ukadike, IPMAN spokesman, said the refund process began after the intervention of the Department of State Service (DSS).

The report noted that the DSS brokered a peace deal between the parties involved.

He said:

"We attended a meeting with the DSS Director who intervened in our matter."The refund process is underway, with NNPC returning funds to individual marketers' wallets."

He also revealed that a direct purchase from the Dangote refinery will now be made.

He added:

"The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has agreed to issue licenses to marketers for direct off-take from the Dangote refinery."This move aligns with Nigeria's deregulated downstream market, granting eligible firms the capacity to import petrol directly."

Ukadike also disclosed that NMDPRA has approved N10 billion to settle outstanding payments under the Petroleum Equalisation Fund (PEF) owed to IPMAN.

He added:

"NNPC has also agreed to reduce the selling price to marketers from N1,040 per litre to about N1,000."

Ukadike also mentioned that there is ongoing discussions to establish pricing terms with the Dangote refinery.

NNPC, IPMAN face-off could lead to high petrol prices

Legit.ng previously reported that the IPMAN had raised concerns over imminent petrol scarcity despite increasing prices.

IPMAN said its members and the Nigerian National Petroleum Company Limited (NNPC) management disagreed.

IPMAN national publicity relations officer Okanlawon Olanrewaju disclosed that the current price at which NNPC sells petrol to marketers is too exorbitant and might cause another fuel scarcity.

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Source: Legit.ng