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IPMAN threatens nationwide shutdown over rising petrol prices

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Independent Petroleum Marketers Association of Nigeria (IPMAN) president, Abubakar Maigandi, discussed rising petrol prices during a live broadcast. Independent Petroleum Marketers President, Abubakar Maigandi spoke on the rising costs of petrol in Nigeria. Photo Credit: Facebook
  • Independent Petroleum Marketers Association of Nigeria (IPMAN) warned of a potential nationwide shutdown due to soaring petrol prices
  • President Abubakar Maigandi said that Nigerian National Petroleum Company Limited (NNPCL) price to marketers is higher than its acquisition cost
  • Petroleum Marketers demanded N15 billion funds with the  Nigerian National Petroleum Company Limited (NNPCL) which has been held for three months

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has issued a warning that it may stop operations across the country due to the rising cost of Premium Motor Spirit (petrol) supplied to its members by the Nigerian National Petroleum Company Limited (NNPCL).

Speaking during a live television broadcast on Thursday, October 10, Abubakar Maigandi, the president of IPMAN said that the price charged was higher than what NNPC originally paid for the product from the Dangote refinery.

IPMAN raises concerns over NNPC inflated petrol pricing

He explained that while NNPC acquired the product from the refinery at N898 per litre, it is asking marketers to pay N1,010 per litre in Lagos, N1,045 in Calabar, N1,050 in Port Harcourt, and N1,040 in Warri.

“Our major challenge now is that independent marketers have an outstanding debt from the NNPC and the company collected products through Dangote at a lower rate, which is not up to N900, but they are telling us now to buy this product from them at the price of N1,010/litre in Lagos; N1,045 in Calabar; N1,050 in Port-Harcourt; and N1,040 in Warri,” Maigandi stated.

He also mentioned that the national oil company has been holding the funds of independent marketers for approximately three months.

IPMAN reveals N15 billion held by NNPC 

Maigandi emphasised that the association's funds held by NNPC had accumulated to N15 billion, noting that marketers were eager to engage fully in the petrol business and its related activities after the sector's complete deregulation.

He added, “Marketers want to be fully engaged in the business of petrol and its components. NNPC has been the one bringing in the product and loading and has an off-take in the Dangote refinery.

“We are now being allowed to import and there is no challenge on that issue. What we are after is to get the product directly from Dangote and not through NNPC. Currently, they owe us up to N15bn.”

IPMAN threatens shutdown over NNPC pricing strategy

On its pricing, he said, “If we start buying from Dangote at its current price, we will sell at N970, lower than the price of NNPC. Dangote sold to NNPCL at N898/litre. But they are asking us to buy from them at their pump price, can you imagine this kind of slavery?  We continue to talk about price disparity every day and it’s there for all Nigerians to see,” Maigandi stated

Protesting against the situation, the association, which manages over 70 per cent of filling stations nationwide, warned of a possible shutdown and called on NNPC to refund earlier payments made for petrol supplies by its members.

NNPCL raises petrol prices, FG distances itself from action

Meanwhile, TheRadar earlier reported that the Federal Government has distanced itself from the latest petrol price hike by the Nigerian National Petroleum Company Limited (NNPCL).

Minister of Information and National Orientation, Mohammed Idris explained that the prices are a reflection of the market realities, not government directives.

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Halima AdeosunAdmin

Halima Adeosun is a news writer with over 5 years of experience reporting insightful events, and human interest stories.

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