New Fuel Price Expected As NNPC Sell To Marketers At Fresh Rate

VAM News October 15, 2024 in Business, National Tagged NNPC, Petrol - 3 Minutes

News Update

THE Nigerian National Petroleum Company Limited has set the price of Premium Motor Spirit (petrol) at N995 per litre for the Independent Petroleum Marketers Association of Nigeria.

This decision emerged after the Department of State Services intervened in ongoing disputes between NNPC and IPMAN.

Hammed Fashola, the National Vice President of IPMAN, confirmed that the DSS’s involvement facilitated the resolution of several challenges facing marketers.

He noted that the Nigerian Midstream and Downstream Petroleum Regulatory Authority has agreed to pay the outstanding N10 billion owed to the association and resolve issues regarding direct petrol purchases from the Dangote refinery.

Fashola expressed gratitude for the DSS’s role in fostering cooperation among the parties, stating that their efforts contributed to a peaceful resolution of the situation.

With the new ex-depot price of N995, he indicated that IPMAN members would be able to align their prices more closely with major marketers.

However, he acknowledged that transportation costs would still influence the final retail price, particularly for those operating in remote areas.

Currently, some IPMAN members are selling petrol for around N1,200, depending on their location.

Fashola assured that with the introduction of the new price, there would be a slight reduction in costs.

He emphasized the importance of analyzing pricing structures and expenses to establish a uniform price across various regions, particularly in the Lagos area.

The association aims to reach an agreement that considers transportation and other charges to create a more equitable pricing model.

“We really appreciate their intervention. They are doing their job. Anywhere they have seen that there may be as crisis, it is their duty to intervene. And their intervention brokered peace and understanding between the parties, and everybody agreed to work together,” Fashola stated.

Asked to disclose how much the NNPC will sell PMS to IPMAN, he replied, “For now, tentatively, I think they are offering us N995 per litre.”

With the N995 ex-depot price, Fashola assured that IPMAN members would no longer sell at prices much higher than that of major marketers, saying, however, that distance is another factor for pricey PMS.

“Our members sell at N1,200 or so and this depends on the location. I think with the N995, there will be a little reduction. Don’t forget that if you transport a product from Lagos to a far distance, you will pay for transportation and other charges.

“We want to work on that because we want to have a common ground. When we sit down and look at the price analysis offered to us, and factor in all our expenses, we want to have a uniform price as much as possible.

“So, I will not be able to tell you the exact price now, but we are working on it, especially in the Lagos axis and other zones. We will look at the transportation cost and all that. At the end of the day, we will fix the price for ourselves,” he stated.