Fuel Prices Could Be Lower if Obtained Directly from NNPC, Says IPMAN

Fuel Prices Could Be Lower if Obtained Directly from NNPC, Says IPMAN

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has asserted that they could offer premium motor spirit (PMS), also known as fuel, at prices below those set by the Nigerian National Petroleum Company Limited (NNPCL) if they could procure the product directly from NNPC.

During a recent interview, Abubakar Maigandi, the National President of IPMAN, highlighted this stance, emphasizing that the main obstacle faced by independent oil marketers was the inability to source the product directly from NNPC’s depot.

Maigandi explained that while NNPC sells fuel to private depot owners at a rate of N557 per litre, independent marketers are compelled to purchase from third-party suppliers at N630 per litre.

This discrepancy, according to Maigandi, contributes to the higher prices at which IPMAN members sell fuel, often around N650 per litre or even higher, despite constituting 80% of the market share.

He stressed that if independent marketers could access fuel directly from NNPC, they could potentially sell below NNPC’s rates, benefiting the masses. However, the current procurement process through private depots, coupled with associated transportation costs and profit margins, results in higher retail prices.

Maigandi revealed that IPMAN had communicated its challenges to the Federal Government, expressing optimism that corrective action would be taken, considering the outcry from the public.

Highlighting the disparity, Maigandi pointed out that NNPC retail stations typically sell fuel at around N580 or lower, benefiting from the lower procurement cost of N556 per litre from NNPC. However, independent marketers are compelled to buy from private depots, leading to higher prices for consumers.

IPMAN’s recent allegations against NNPC, claiming the retention of over N300bn in its accounts meant for purchasing PMS, were refuted by NNPC.

As it stands, NNPC remains the sole importer of petroleum products in Nigeria, impacting pricing and distribution across the nation.

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