Business

Deregulation: Oil Marketers Set to Import Cheaper Petrol

Published by Tope Fakinlede on October 11th, 2024.

Deregulation: Oil Marketers Set to Import Cheaper Petrol

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has noted that the complete deregulation of petrol pricing, combined with the withdrawal of NNPC Limited as the exclusive buyer from the Dangote Refinery, allows marketers the freedom to source fuel from a range of suppliers, including imports.

An industry expert indicated that NNPC Limited does not engage with associations like IPMAN, but rather with individual companies that apply and pay for petroleum products.

This announcement follows the recent decision by NNPC to raise petrol prices by 15 percent, bringing costs to N998 per liter in Lagos and N1,030 per liter in Abuja.

Chief Chinedu Ukadike, IPMAN’s Public Relations Officer, emphasized that marketers will seek out the most affordable sources for petrol to remain competitive. He expressed concerns about the lack of transparency in the current pricing environment, noting that marketers are often left uninformed about key decisions.

“The situation has been clouded in secrecy, but with full deregulation now in effect, marketers have the option to import. We will see how this unfolds, and whether we will choose to buy from Dangote or other suppliers offering better prices,” he said.

Earlier, IPMAN President Alhaji Abubakar Maigandi Shettima called for a refund of N15 billion from NNPC Limited for petrol orders that independent marketers placed but were never fulfilled. In an interview with Channels TV, he asserted that if NNPC’s prices exceed those of Dangote Refinery, the company should reimburse the independent marketers for their payments.

Shettima criticized NNPC for demanding additional payments from marketers despite failing to deliver the products for which they had already been charged.

In contrast, an anonymous expert pointed out that NNPC Limited does not have a business relationship with IPMAN, as the association has not submitted the required application or payment to lift petrol. Instead, NNPC is working with multiple individual companies.