Petrol: NNPC Selling Far Above Purchased Price From Dangote — Marketers

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has accused the Nigerian National Petroleum Company Limited (NNPC Ltd) of selling petrol to its members at a prize far higher than amount it bought it from Dangote Refinery.

National President of IPMAN, Mr Abubakar Garima, who made the accusation, specifically criticized the recent hike in petrol prices by the NNPC Ltd, saying that while the Company bought petrol at less than N900 per litre from Dangote, it wants to sell to markers at over N1,000 per litre.

Garima also said that marketers have not been able to access petroleum products from NNPC since the price hike, despite having made down payments.

In the words of Garima; “NNPC sourced products from the Dangote refinery at a rate below N900 but, want to sell to marketers at a higher rate, ranging from N1,010 to N1,050.

The NNPC Ltd should sell at the same rate it purchased from the Dangote Refinery to foster competition in pricing or to refund the marketers’ payments.

“NNPCL collected products through Dangote at a lower rate, which is not up to N900. But they are telling us to go and buy this product from them at the rate of N1,110 in Lagos, N1,045 in Calabar, N1,040 in Port Harcourt, N1050 in Warri.

“Our money is with them. We told the Company that it should rather sell it at the rate Dangote is selling or they should return our money. We are Nigerians like they are. If they sell it the same way Dangote is selling, we may decide to sell our own at N1,020 or N1,010 and create some kind of competition,” he said.

Garima noted that the recent price adjustment in the pump price of petrol signaled a full deregulation of the downstream sector, adding that with the deregulation, and NNPC should no longer be the sole importer of petrol or the exclusive off-taker from the Dangote refinery.

He said that competition is expected to emerge in the sector, adding that marketers should have the opportunity to source for their petrol either through direct importation or purchases from the Dangote refinery.

Garima further said; “Now that the downstream sector is fully deregulated, we independent marketers will be fully engaged in the business. Before, it was only the NNPC that was importing petrol and at the same time, it is only NNPC that has an offtake in Dangote refinery.

“With complete deregulation, we can use any vessel because we are allowed to go and import ourselves. The reason, we had a lot of challenges, is because it was only the NNPC that was allowed to import fuel and the only one that can buy from Dangote Refinery.

“But with the current arrangement whereby Dangote will buy in naira and sell in naira, Dangote will give us this product directly, not through the NNPC,” Garima said.