NNPCL Reduces Fuel Price

NNPCL, Nigerian National Petroleum Company Limited has agreed to sell Premium Motor Spirit (petrol) to members of the Independent Petroleum Marketers Association of Nigeria (IPMAN) at a rate of N995 per litre.

This agreement follows the intervention of the Department of State Services (DSS) in the ongoing dispute between the two parties.

Hammed Fashola, the National Vice President of IPMAN, confirmed the resolution, stating that the DSS’s involvement helped address numerous challenges faced by the marketers.

“We really appreciate their intervention.

They are doing their job. Their efforts brokered peace and understanding between the parties, and everyone agreed to work together,” Fashola stated.

When asked about the pricing, he explained, “For now, tentatively, I think they are offering us N995 per litre.”

This price point means that IPMAN members will be less likely to sell petrol at significantly higher rates than major marketers.

However, Fashola cautioned that geographical distance could still lead to price variations.

“Our members currently sell at around N1,200, depending on their location. With the N995 price, there should be a slight reduction, but transportation costs from Lagos to distant locations will still play a role,” he noted.

Fashola emphasized that the association aims to establish a more uniform pricing structure by factoring in transportation and operational costs.

Addressing the issue of fuel queues at filling stations, Fashola attributed the long lines to price disparities rather than a genuine shortage of petrol.

“The queues are caused by the difference in prices. If there wasn’t much variation, you would find filling stations operating normally,” he explained.

In addition, IPMAN plans to meet with Dangote Refinery this week to explore direct purchase options.

Fashola expressed optimism about taking advantage of the government’s directive that allows marketers to buy petrol directly from local refineries.

“While we are keen to engage with Dangote, we will also consider NNPC for our purchases, as it all comes down to which option provides the best price,” he stated.

Recall that IPMAN raised concerns that NNPCL was charging independent marketers N1,010 per litre in Lagos, despite acquiring the product from Dangote Refinery at N898 per litre.

This led to demands for refunds from NNPC for earlier petrol supply payments.

As these developments unfold, both IPMAN and NNPCL are hopeful that the new agreement will foster a more stable and equitable pricing environment in Nigeria’s oil sector.