The Independent Petroleum Marketers Association of Nigeria (IPMAN), has expressed frustration with the Nigerian National Petroleum Corporation (NNPC) over the recent hike in petrol prices. According to IPMAN’s national president, Abubakar Garima, the NNPC is attempting to sell petrol to marketers at prices above N1,000 per liter, despite sourcing the product from the Dangote refinery at rates below N900 per liter.
In an interview on Thursday, Garima revealed that independent marketers have struggled to access fuel from the NNPC since the price hike, even after making down payments. He accused the NNPC of inflating prices, with quotes ranging between N1,010 and N1,050, depending on the location, while the Dangote refinery had supplied the product for much less. Garima demanded that the NNPC either sell the fuel at the same rate they obtained from Dangote or refund the marketers’ payments.
“As independent marketers, our money is tied up with the NNPC. They collected products from Dangote at a lower rate, less than N900, but are selling to us at inflated prices. We are asking them to sell it at Dangote’s price or give us our money back,” he stated.
Garima suggested that if marketers could purchase fuel at the lower rate, they could sell it around N1,020 or N1,010, creating competitive pricing that would benefit consumers.
The price hike also signals a significant shift towards full deregulation of Nigeria’s downstream oil sector. Garima explained that NNPC is no longer the sole importer of petrol or the exclusive buyer from the Dangote refinery, opening the market to competition. Independent marketers can now either import fuel themselves or purchase directly from the Dangote refinery, fostering a more competitive market.
With the full deregulation of the sector, independent marketers hope to play a larger role in the supply chain, which has historically been dominated by the NNPC. Garima emphasised that this new arrangement will allow marketers to bypass NNPC and deal directly with Dangote, avoiding inflated prices and offering more competitive rates.
This development comes as the NNPC recently raised petrol prices again, with costs reaching up to N998 per liter in Lagos and N1,030 in Abuja, marking the second price hike in less than two months. These increases have sparked concerns about further price surges, especially as the NNPC’s intermediary role with Dangote refinery appears to be ending. Fuel prices have continued to rise as the Nigerian government gradually phases out petrol subsidies, while struggling to regulate the supply chain effectively for marketers and filling stations.
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