IPMAN criticizes NNPC over petrol price hike, calls for fair pricing

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has condemned the recent spike in petrol prices, accusing the Nigerian National Petroleum Corporation Limited (NNPCL) of overpricing fuel sourced from the Dangote Refinery.

According to IPMAN’s national president, Abubakar Garima, NNPCL is purchasing petrol from Dangote at below N900 per liter but attempting to sell it to independent marketers for as high as N1,050 per liter.

In an interview on Thursday, Garima disclosed that despite making down payments, marketers have been unable to access petroleum products from NNPCL since the price increase.

He explained that NNPCL is offering fuel at different rates across Nigeria’s regions, with prices ranging from N1,010 in Lagos to N1,050 in Warri, while purchasing the same product from Dangote at lower prices.

Garima demanded that NNPCL either sell petrol at the same rate it acquired from Dangote or refund marketers’ deposits.

“We are asking them to sell it the way Dangote is selling. We are Nigerians like they are. If they sell it at Dangote’s rate, we could price competitively at N1,010 or N1,020,” Garima said, stressing that any price reduction would benefit consumers through increased competition.

Garima further stated that the recent price hike marks the full deregulation of Nigeria’s downstream oil sector, allowing independent marketers more access to source petroleum products.

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Previously, NNPCL held a monopoly on petrol imports and served as the sole off-taker from the Dangote Refinery. With deregulation, marketers now have the option to import directly or buy from Dangote, fostering competition.

“Now that the downstream sector is fully deregulated, we independent marketers will be fully engaged in the business. We can now use any vessel to import or source directly from Dangote, not through NNPCL,” Garima explained.

The Nigerian government has gradually phased out fuel subsidies, causing steady increases in petrol prices.

This deregulation has also prompted concerns that NNPCL’s withdrawal from the Dangote Refinery deal could lead to further price hikes, especially as the government struggles to stabilize petrol supply to marketers.

NNPCL recently raised the price of petrol to approximately N998 in Lagos and N1,030 in Abuja, marking the second price hike in less than two months, heightening concerns over affordability and market stability.