Abuja, NIGERIA — In a significant development for the Nigerian oil sector, the Nigerian National Petroleum Company Limited (NNPC) has successfully negotiated a new agreement with the Independent Petroleum Marketers Association of Nigeria (IPMAN) to lower the ex-depot price of petrol to N955 per litre.
This agreement follows extensive discussions aimed at resolving a pricing dispute concerning petrol sourced from the Dangote Refinery, which had previously set the price at N1,010 per litre in Lagos.
The dispute arose when IPMAN accused NNPC of imposing inflated prices that exceeded the purchasing cost from the Dangote Refinery. In response, IPMAN’s members demanded refunds for deposits made to the NNPC. Abubakar Maigandi, president of IPMAN, confirmed that the situation garnered the attention of the Department of State Services (DSS), which played a crucial role in facilitating the negotiations that ultimately led to the price reduction.
With the new price established at N955 per litre in Lagos, fuel loading operations are expected to resume at depots nationwide, alleviating some of the pressure caused by the previous pricing structure.
However, negotiations between IPMAN and the Dangote Refinery regarding direct fuel loading are ongoing. Maigandi expressed optimism, noting that once these discussions are finalized, petroleum marketers will have the opportunity to load fuel directly from the refinery.
This move aligns with the Nigerian government’s directive aimed at encouraging petroleum marketers to source their products directly from the Dangote Refinery. It marks a crucial step towards the deregulation of the downstream oil sector, promoting a more competitive and efficient market.
Wale Edun, the Minister of Finance, underscored that this initiative is part of the government’s broader strategy to enhance competition within the petroleum market. This is seen as vital for improving efficiency and ensuring stable fuel availability across the country.
The agreement between NNPC and IPMAN is regarded as a crucial advancement in addressing the persistent fuel scarcity that has plagued Nigeria. With IPMAN members ready to resume fuel loading and distribution, these recent developments are anticipated to have a positive impact on petrol availability, contributing to a more deregulated and responsive petroleum industry.
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