The Independent Petroleum Marketers Association of Nigeria (IPMAN) have provided assurance of a potential decrease in the price of Premium Motor Spirit (PMS), commonly known as petrol.
This assurance comes on the heels of a recent surge in fuel costs following the commencement of product lifting by the Nigerian National Petroleum Company Limited (NNPCL) from the Dangote Refinery.
The current situation has seen petrol prices skyrocket to ₦950 per litre in Lagos and its surrounding areas, while consumers in northern regions are facing even steeper costs of up to ₦1000 per litre.
However, IPMAN’s spokesperson, Chinedu Ukadike, has offered a glimmer of hope during an appearance on Channels Television’s Morning Brief.
Ukadike stated, “It is just very simple. It shows that the libralisation of the market is on course, because there is no way Dangote refinery will be producing petrol in Nigeria without considering IPMAN as one of its strategic stakeholders.”
He further emphasized IPMAN’s significant role in the distribution network, saying, “We were even thinking that one of his first points of call was to discuss with IPMAN and not NNPCL, because we can distribute every single drop of products produced by Dangote refinery because we are situated in every nook and cranny of this country. We also possess about 85 per cent of filling stations in Nigeria.”
The IPMAN spokesperson expressed optimism about ongoing discussions with the Dangote Refinery for direct product lifting.
He assured that once these negotiations are successful, “the issue of pricing and differential in pricing will be gone. What we are seeing here is price disparity.”
Ukadike highlighted the potential benefits of IPMAN becoming independent in its product sourcing: “But if IPMAN becomes independent, prices will drop. Because it will give us the opportunity for possible competition because we will no longer be depending on another source to get products.”
Drawing parallels with the diesel market, Ukadike pointed out how IPMAN’s involvement had previously impacted prices positively. “Dangote also opened up to IPMAN when he started producing AGO, diesel. We entered the market and started buying it, and prices of AGO came down. It was around N1600, now it is between N1000 to N1100,” he said.
Ukadike emphasized the importance of equal opportunities in a deregulated economy, stating, “This is a deregulated economy, and every stakeholder and player should be given equal opportunity.”
