IPMAN also revealed that the price of petrol from the $20 billion Lekki-based plant was N940/litre and N990/litre when purchased using ships and trucks, respectively.

Our correspondents further gathered that the independent oil marketers might not import petrol again following the deal to begin direct lifting from the Dangote refinery.

Speaking on Channels Television on Tuesday, IPMAN President, Abubakar Garima, said the pump prices of petrol at its retail outlets will drop following the agreement with the Dangote refinery to lift products directly from the plant

On Monday, IPMAN agreed with the Dangote refinery to directly lift petrol, diesel, and other petroleum products.

This agreement follows months after the Nigerian National Petroleum Corporation suspended its plan to serve as the sole off-taker of petroleum products from the 650,000 barrels per day refinery.

The IPMAN president explained that the Dangote refinery had been obliged to allow marketers to lift PMS, AGO, and DPK directly for onward supply to their depots and retail outlets but didn’t reveal the price.

Giving an update on pricing during the interview, the IPMAN national officer said the Refinery has provided two different rates for marketers based on their preferences.

He said marketers can load at the gantry at a price of N990 per litre or N940 through vessel transportation.

Garima said, “Presently, we have been given two different arrangments on how to buy fuel from the refinery. There is the one that we can load the vessels and carry to our various depots at the rate of N940 per litre. Then for the depots, it is at the rate of N990 per litre.

“The difference is because we have to load it and carry it to another part of the state. We use vessels to carry these products and there is another one to load from the gantry.

“For Port Harcourt, Warri, Calabar, we have to use vessels because there is no Dangote loading gantry there, we have to carry it to our private depot and discharge and distribute it to our members.”

Checks by our correspondent showed that the new price is lower than the N960 and N990 per litre revealed by the refinery for ships and trucks last week.

Garima noted that the collaboration aims to ensure a consistent and affordable supply of Premium Motor Spirit and other products nationwide.

He further projected that the petrol price may be reduced by N50 or more, depending on the location of purchase.

Garima explained that direct purchases from the 650,000-barrel-per-day refinery will eliminate payments to intermediaries, such as the Nigerian National Petroleum Company and depot owners.

According to him, this reduction in costs will be reflected in the prices of petrol within the coming weeks.

“We have the overall market in the country. We go everywhere in the country. The implication goes beyond the issue of price, but still, price is the main target.

“The masses are looking for how we, Independent Petroleum Marketers, can reduce price for them. So the price too will reduce because we are not buying through the third party.

“So the profit that we have been giving to the third party like NNPC and depot owners will be reduced. That is the issue.

“For instance, the current price in Maiduguri now is N1,200 per litre. So with these current changes, it may likely reduce to N1,150, which there is a reduction of N50. So that’s N1,150. It may even be below that.

“And as we continue, you know, this thing, since it’s deregulation. Yes. As we continue. It can go down. It can go down continuously because, provided that the product is available, you may find that the market will come a little bit low, and then the naira will start appreciating. And then if the crude oil price is reduced, automatically, the same thing will be reduced.

Garima also highlighted that this arrangement will help end fuel scarcity, as products will be more readily available.

“Again, the availability is also there. If a marketer pays for a product before, these retailers hold our money before supplying us with fuel. That’s the reason why you may find sometimes these filling stations don’t have fuel.

“But now, since we are getting the product directly from the Dangote refinery, the issue of delay is eliminated. Immediately, we get the product, we discharge to our filling stations,” he added.

Furthermore, Garima revealed that the NNPC has begun settling its N4bn debt owed to marketers.

“The NNPC has been paying our money back. We have been loading. Our money with them is reducing drastically. That one is not a problem for us now.

“The only thing still is that there are some remaining balances that they have not been able to pay our marketers to load the products. I spoke with the MD retail of NNPC and he told me that our balance will soon be sorted out,” Garima said.

On how much Nigerians will purchase, he said, “With this recent development, definitely anywhere you go, you will find that at the end of the day, we have the lowest price.”

Confirming this, the IPMAN National Publicity Secretary, Chinedu Ukadike, has stated that the association has started the completion of the necessary documentation to begin lifting products.

Ukadike, in an exclusive interview, also confirmed that the product would be purchased in bulk on behalf of its members.

He said, “For now, we are going to be doing it comprehensively, in an off-taker manner. All independent marketers will be buying from Dangote as directed by our president.

“We are still putting together our papers on when to start loading as quickly as possible, but the gig now is that we have been granted permission to load.”Meanwhile, the IPMAN Vice President, Hammed Fashola, told one of our correspondents that if petrol is available locally, there is no need for importation any more.

Fashola recalled that IPMAN had made it clear right from the start that it would support the Dangote refinery and that the new agreement would be a win-win for all.

“We have set it from the onset that we are ready to work with Dangote. We need to encourage him. We are very conscious of that. Based on this, we believe it is going to be a win-win situation for both Dangote and IPMAN. I am sure the price will be reasonable. We are just after the price. Once the price is okay for us, we are good to go,“ he stated.

This, according to the association, will ensure the availability of petroleum to Nigerians at a cheaper rate.

IPMAN’s National President, Abubakar Garima, announced this at a press briefing on Monday in Abuja, following a meeting of the National Working Committee of the association.

He explained that the Dangote refinery had obliged IPMAN to lift PMS, AGO and DPK directly for onward supply to IPMAN depots and retail outlets. This new arrangement with the Dangote refinery would ensure a steady and ceaseless supply of PMS products all over Nigeria at an affordable rate.

He said, “Following our recent meeting with Alhaji Aliko Dangote and members of his top management staff in Lagos, we are happy to state the following; Dangote Refinery has obliged IPMAN to lift PMS, AGO and DPK directly for onward supply to IPMAN depots and retail outlets. That this new arrangement with the Dangote refinery will ensure a steady and ceaseless supply of PMS products all over Nigeria, at an affordable rate for Nigerians also.”

On October 29, the founder of Dangote Industries Limited, Aliko Dangote, said the refinery held over 500 million litres of petrol, but added that oil marketers were not buying his product.

In a counter-response, IPMAN said its members had been unable to load petrol from the Dangote refinery for days. Garima said the association paid N40bn to the Nigerian National Petroleum Company Limited, but still cannot source the product – but the refinery said it has not received any payment from the IPMAN for refined petroleum products.

Speaking further at the briefing, Garima urged IPMAN members to support Dangote Refinery, citing backward integration benefits and positive impacts on Nigeria’s Foreign Exchange market.

Regarding pricing, Garima expressed confidence that negotiations with Dangote would yield lower rates.

“All IPMAN members should fully support the Dangote refinery, as it’s the ideal thing to do considering the monumental benefits of backward integration and the medium to long-term impact it will have on the Foreign Exchange markets in Nigeria.

“IPMAN members nationwide should rely on the Dangote refinery and Nigerian rfineries for their white products, as this will translate into ensuring more job opportunities in Nigeria, as well as signify total support for President Bola Tinubu’s Renewed Hope Agenda,” he added.

Commenting, an Energy expert Kelvin Emmanuel, said the new agreement would eliminate financing and margin costs incurred by the NNPCL.

He said, “What is cheery about this news is that NNPC’s letter of credit as financing cost ($28 per metric tonne) that is passed to IPMAN — controlling 30,000 retail stations and their margin ($26.48 per metric tonne) will be removed.”

The IPMAN president also stated that the association is preparing for a smooth transition to nationwide CNG refill stations, as it is currently in negotiations with the presidential CNG initiative.

On CNG, I would also like to call on all our members at IPMAN to begin to put all types of machinery in place for a successful transition of the Federal Government’s plans to initiate CNG refill stations in all our outlets. Truly there is no doubt that CNG has the potential to rejuvenate our economy for a better life for Nigerians, and IPMAN is ready to give her all to support the CNG initiative.

“IPMAN is also calling for a partnership with the Federal Government of Nigeria to hasten the quick success of the CNG initiative for Nigeria. We believe that for the CNG initiative to succeed there must be a credible partnership between IPMAN and the PCNGI, without which Nigerians would not have ready and near access to CNG outlets.”

This partnership between Dangote and IPMAN is expected to increase efficiency, affordability, and economic growth for Nigeria’s petroleum industry. This move is expected to eliminate middlemen, reduce costs, and ensure steady supply.

Early this year, the Dangote Refinery said it would supply fuel to about 150,000 retail outlets operated by oil marketers.

In his remarks, the chairman, Board of Trustees of the association, Aminu Abdukadir, said that IPMAN must remain committed to providing the retail stations and funds to ensure that products are delivered to consumers.

“The business of making money without doing anything is over with the deregulation of the sector. For IPMAN to survive, it must provide the filling stations, the money, the trucks, to provide this commodity to motorists,” he said.

Meanwhile, the Executive Secretary of the Major Energy Marketers Association of Nigeria, Clement Isong, has explained that the final landing price is determined by several key factors, including the exchange rate, logistics efficiency and cost negotiating power based on volume bought.

IPMAN revealed on Thursday that the cost of petrol from the Dangote Petroleum Refinery to NNPC was about N898/litre, but noted that NNPC was selling the same product to independent marketers at N1,010/litre in Lagos.

The association, which controls over 70 per cent of filling stations nationwide, kicked against this and threatened to down tools, as it also demanded a refund from NNPC for earlier petrol supply payments made by its members. This development may further worsen the petrol scarcity and queues in many parts of the country.

Meanwhile, it was also gathered on Thursday that members of the Major Energies Marketers Association of Nigeria were still loading subsidised petrol from Dangote refinery, based on earlier arrangements with NNPC.

Speaking with one of our correspondents on Thursday, the National Publicity Secretary of IPMAN, Chinedu Ukadike, said the association may be forced to take action if the challenge between IPMAN and NNPC is not resolved immediately.

This development followed an earlier revelation by IPMAN national president, Abubakar Maigandi, that NNPC was asking independent marketers to buy petroleum products from its depot at N1,010/litre in Lagos State.

Maigandi, who spoke during a live television interview on Thursday, argued that the price was higher than what NNPC paid for the product from the Dangote refinery.

He also noted that independent marketers’ funds had been held by the national oil company for about three months.

According to him, NNPC purchased the product from the refinery at N898/litre but is asking marketers to buy it at N1,010/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 pointed out that the association’s funds with NNPC had reached N15bn, stressing that marketers were eager to be fully involved in the petrol business and its components following the full deregulation of the sector.

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.”

On Wednesday, the retail stations of NNPC raised the price of petrol to N1,030 from N897/litre in Abuja, and in Lagos it was hiked to N998/litre from N868/litre. Other locations witnessed similar price hikes, a development that triggered anger among Nigerians.

The price hike, the second in one month, represents about 14.8 per cent or N133 rise. However, the Nigeria Labour Congress and the Organised Private Sector called for the immediate reversal of the hike in the pump prices.

With the latest price adjustment, it means that in the less than 17 months of the current administration, the price of petrol has risen by over 430 per cent from May 29, when it took over the reins of power.

Asked if NNPC had reached out to resolve the issue with independent marketers, the National Publicity Secretary of IPMAN, Ukadike, responded in the negative.

He said the oil company had not provided any feedback or response following its last discussion with the marketers.

Ukadike said, “No changes or feedback at all. NNPC hasn’t responded to us. They haven’t returned our money. We are still observing what the situation would turn to since they haven’t reached out to us, or probably we would have to withdraw our services if the issue is not resolved.”

He, however, noted that efforts to reach Dangote for direct loading were in progress and a meeting between both parties expected to hold soon.

Ukadike also disclosed that its marketers would sell at a lower rate of N970/litre if allowed to purchase products directly from the refinery.

The IPMAN official added, “Any moment from now, Dangote will invite us, from the fillers we have received.”

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.”

Phone calls and messages to NNPC officials to respond to the position of IPMAN were not replied as of the time of filing this report.

Similarly, officials at the Dangote refinery did not respond to enquiries when contacted for their views on the issues raised by IPMAN.

On the contrary, the Major Energies Marketers Association of Nigeria said it is not owed by NNPC, as it owns a large stock of storage systems to mitigate against sudden changes in petrol prices.

The Executive Secretary, MEMAN, Clement Isong, in a telephone interview, attributed this situation to its continuing relationship with NNPC.

He said, “We have storage tanks, unlike other oil marketers that only have trucks to transport directly to their filling stations. MEMAN is integrated. We have storage tanks, trucks and we have filling stations. So, we have products that we have bought into our storage tanks, which is a big difference from people who buy and take them straight to the station. They don’t have additional storage. We have depots and it takes a little bit longer for us to run out of stock, so we don’t face the challenge of being owed by the NNPC.

“We have a continuing relationship with NNPC and it is not the first time prices have gone up or down. That relationship means that when prices go up or down, we adjust. And so they continue to supply us. Everybody will charge its price according to its business strategy to optimise costs.”

On July 15, 2024, the President of Dangote Industries Limited, Alhaji Aliko Dangote, announced that the $20bn refinery was set to roll out its petrol in August 2024, having resolved its crude oil supply issues through the help of NNPC and the Federal Government.

“Gasoline (petrol) production is to commence in July with sales from August. Annual revenue is projected to exceed $26bn,” Dangote had stated while delivering a presentation at the plant last month.

But oil marketers on Sunday said that no dealer in Nigeria would be able to buy the petrol from the Dangote refinery, because the product would be priced at the international market rate, far higher than the domestic cost at the pumps.

When contacted and asked whether oil marketers had been briefed about the price of petrol from the Dangote refinery, the Deputy National President of the Independent Petroleum Marketers Association of Nigeria, Zarma Mustapha, gave a negative reply.

He, however, stressed that PMS from the plant would be sold at the international market rate, adding that no marketer would want to pay such price currently.

“There has been no official communication from them yet on pricing for petrol. However, one thing I want you to understand is that even if the Dangote refinery starts to release products, particularly PMS, no marketer can be able to buy the product from him.

This is because the refinery is an independent commercial entity and they must recoup their cost of refining and add some margin before they sell out the product. The current price of the product within the country is below the international price of a litre of PMS.

“So you cannot buy the product from the refinery at the international price and then sell it at the prevailing price at the retail outlets. If you do, you are going to lose a huge amount of money, which is a difference of between N400 and N500/litre,” Mustapha stated.

The IPMAN official, however, noted that for Nigeria to have Dangote petrol across its filling stations, the NNPC would have to intervene by purchasing the product and reselling it to dealers at discounted rates.

“NNPC may have to offtake the product, just like they are importing from other countries for upward supply to Nigerian marketers, I think only the national oil company can offtake PMS from them and know how best they can continue to supply it to marketers to sell at the approved current price.

“If it is not done this way, no marketer will be able to buy the product and sell it at a loss of over N400 to N500/litre. It is not possible” Mustapha stated.

the landing cost of petrol was N1,117/litre as of July 16, 2024, according to data released by the Major Energies Marketers Association of Nigeria. MEMAN disclosed this during a webinar with journalists.

The association had also revealed that the landing cost of diesel was N1,157/litre, while that of aviation fuel was N1,127/litre, at the time.

The N1,117 landing cost of petrol is far above the pump price of the product in Nigeria. Currently, the pump price of petrol is between N660/litre and N800/litre, depending on the area of purchase.

When contacted and asked whether major marketers would be able to buy petrol from the Dangote refinery, the Executive Secretary, MEMAN, Clement Isong, said his group had earlier published the landing cost of PMS, adding that this was the realistic cost of the product.

“You have seen the price we published which is the realistic cost, and you know the cost at the pumps today, and Dangote refinery is a business entity that will not want to make losses. So that is all I will say,” he stated.

NNPC is currently the sole importer of petrol into Nigeria. Other marketers stopped importing the product due to their inability to access the United States dollar required for PMS imports.

Dealers in the downstream oil sector also stated that the registration process for marketers at the refinery was still ongoing, as many operators had continued to register with the plant.

It was further gathered that officials of the Nigerian Midstream and Downstream Petroleum Regulatory Authority were meeting with the management of the refinery to perfect the pricing template for products produced by the facility.

On January 12, 2023, the Dangote Petroleum Refinery announced the commencement of production of Automotive Gas Oil, also known as diesel, and JetA1 or aviation fuel.

The President, Dangote Group, Aliko Dangote, had in a statement issued by the firm, said, “We have started the production of diesel and aviation fuel, and the products will be in the market within this month once we receive regulatory approvals. This is a big day for Nigeria. We are delighted to have reached this significant milestone.

“This is an important achievement for our country as it demonstrates our ability to develop and deliver large capital projects. This is a game changer for our country, and I am very fulfilled with the actualisation of this project.”

Following that announcement seven major oil marketers in Nigeria had registered with the refinery for the lifting and distribution of refined petroleum products produced by the plant.

The seven major marketers include 11 Plc, Conoil Plc, Ardova Plc, MRS Oil Nigeria Plc, OVH Energy Marketing Limited, Total Nigeria Plc and NNPC Retail.

The refinery would supply fuel to about 150,000 retail outlets operated by the Independent Petroleum Marketers Association of Nigeria following a meeting between the management of the refinery and executives of IPMAN.

But some Nigerians have expressed concern over the supply of crude to the plant in dollars, and whether this could make the managers of the refinery to sell refined products in dollars, since the plant is located in the free trade zone.

The Dangote Petroleum Refinery and Petrochemical Project, a subsidiary of Dangote Industries Limited, is a 650,000 barrels per day crude oil refinery, located in Dangote Industries Free Zone, Ibeju-Lekki, Lagos, Nigeria.

Responding to the an enquiry on whether the plant would dispense its products in dollars, the National Public Relations Officer, IPMAN, Chief Ukadike Chinedu, admitted that it was true that crude oil, being an international commodity, was sold to the plant in dollars.

He, however, said that this would not make the plant to sell refined petroleum products to the Nigerian market in dollars, stressing that other businesses operated in Nigeria by Africa’s richest man were carrying out their transactions in naira.

“The legal tender in Nigeria is the naira. The cement being sold by Dangote Cement is done in naira, not in dollar. The spaghetti and other essential commodities that he is involved in are all sold in naira. So why should one think that he will now sell fuel in dollars? Except for the offshore sales for those who want to move the refined products out of Nigeria using vessels to transport them to other countries. Such customers may get theirs in dollar equivalent,” Ukadike stated.

He, however, noted that another important thing was for the Nigerian government to be able to close up the widening gap in the foreign exchange rate.

“If the exchange rate for the dollar is low, petroleum products would have been cheap in Nigeria, because the products are imported. So I believe that Dangote will definitely sell the products in our local currency, which is naira,” he stated.

Asked if marketers had been briefed on whether products would be sold in naira or dollars, considering the fact that crude was supplied to the plant in dollars, Ukadike replied, “No, the pricing template has not come out. What is going on now is legislation. The template is not yet out.

“And I must state that there is no way the NNPC will bring out its template in naira and Dangote will bring out its own in dollars. It is not possible! So for the cost of their products, I think they are still trying to fix the prices with the regulatory agencies of the Federal Government.

“They will also look at the feasibility of the market and other factors, before announcing their prices for diesel and aviation fuel, which are the products they are producing now. So the price is not out, for once it is out, you’ll be informed.”

Ukadike also stated that more oil marketers were registering with the refinery, adding that IPMAN had been at the forefront of the registration process

“More applications for registration are being sent to the refinery by marketers and I think the process has been ongoing for some time now. It is a good thing for the country to have a refinery that refines its crude domestically,” the IPMAN official stated.

Another major marketer confirmed that the pricing template for refined products from the facility has not been released yet, but noted that there had been a series of meetings with the regulators on this.

Asked whether the pricing template for refined products had been released, the dealer, who pleaded not to be named due to lack of authorisation, replied, “No, not yet. We have not received any template yet, not to my knowledge.

“But it is possible that the template should be out soon because various meetings by officials of the refinery with dealers and regulators have been ongoing lately. The meetings are to give insights about activities at the plant. And I believe the template is going to be in naira.”

The Dangote Petroleum Refinery is an industrial plant that transforms crude oil into various usable petroleum products such as diesel, gasoline, jet fuel and kerosene.

Dangote Petroleum Refinery with a capacity to refine 650,000 barrels of crude oil per day covers an area of approximately 2,635 hectares in the Lekki Free Trade Zone in Lagos.

The refinery has so far received six million barrels of crude oil at its two SPMs located 25km from the shore. The first crude delivery was done on December 12, 2023, and the 6th cargo was delivered on January 8, 2024.

The refinery can load 2,900 trucks a day at its truck-loading gantries. The products from the refinery will conform to Euro V specifications, according to the firm.

IPMAN ‘s Public Relations Officer, Okanlawon Olanrewaju, disclosed this while speaking in an interview with Channels Television, warning Nigerians against panic buying of petrol.

Oil marketers had said that subsidy on petrol was increasing considering the crash of the naira against the United States dollar and the cost of crude oil, stressing that PMS should sell for N1,200/litre in a free market.

Though the possibility of another hike in pump price has been dismissed by the Nigerian National Petroleum Company Limited, on Wednesday, many Nigerians are still apprehensive

Meanwhile, IPMAN ‘s PRO assured that oil marketers can not unilaterally increase the price of fuel until told otherwise by NNPCL.

“As far as the independent marketers are concerned, we don’t have plans or plans to increase fuel pump price

“There is no basis for that for now. There is no signal from NNPC that we should increase. So, we cannot do that on our own except NNPC comes out and says we are going to increase pump price. On our own, there is nothing like that.

“I want to use this opportunity to appeal to the public to stop panic buying. There is nothing like that (fuel price increment). It is just a rumour, ” he said.

President Bola Tinubu had in his May 29 inauguration said the 2023 budget made no provision for fuel subsidy and that it was no longer justifiable.

The declaration saw petrol per litre jumping from around N184 to over N600 in several parts of the country. The removal of fuel subsidy also came with attendant economic crises with inflation moving to an all-time high

It was also gathered that crude oil refiners were currently releasing refined petroleum products on credit to dealers from Nigeria, following the recent unification of the country’s exchange, which boosted the confidence of operators.

This came as the Independent Petroleum Marketers Association of Nigeria told our correspondent that they would compete with the Major Oil Marketers Association of Nigeria and the Nigerian National Petroleum Company Limited on the importation of petrol, stressing that this would crash the cost of PMS.

Before the President, Bola Tinubu, removed subsidy on petrol, the product was solely imported by NNPCL, as other marketers stopped its imports due to their inability to access the United States dollar.

At the time, oil marketers explained that the NNPCL was accessing the dollar at a lower rate, which was unfair and did not support PMS importation by other dealers.

But with the recent unification of the exchange rate, oil marketers had to join in the importation of petrol and confirmed that the products should be arriving Nigeria from next week.

Asked to state when the products being imported by major marketers would start hitting Nigeria, the Executive Secretary, Major Oil Marketers Association of Nigeria, Clement Isong, replied, “I will simply say between the second and third week of July”

Isong, however, explained that the NNPCL had made a lot of fuel imports, as some of its vessels were still on the way to Nigeria.

“Let me say that NNPCL has imported significantly to prevent the country from running dry. The vessels NNPCL imported are offshore Nigeria, so they have a significant volume, therefore in all circumstances the country will not run dry.

“So the options everybody has is that they can buy from NNPCL ex-depots or they can go and import from Europe or from other places. The assignment is that you compare your price if you buy from NNPCL or import from Europe.

“More or less, the taste of the pudding is in the eating. So do your calculation as the best as you can. But you will only know the full impact when the product is in your tank. If it goes right, it is then that you will know how competitive your price is. The more you do it, the more efficient you become,” Isong stated.

On how marketers were sourcing of forex for imports, the MOMAN officials dealers were accessing the foreign exchange from banks and other sources.

“People access forex from different places. Just that it is easier for some people than others. Some people have strong banks, while others have other means of accessing forex. So everyone plays on their strength and ability to access forex.

“And it must be stated that the floating of the exchange rate is a plus, for instance, some people can go and get credits from their suppliers, while others have LCs (Letters of Credits), means of borrowing, etc.

But the most important thing is that there is a unified exchange rate and that makes people more confident in going to import. There is no unfair advantage, where in the past some persons have access to low exchange rates,” Isong stated.

Explaining what he meant by saying some dealers could get credit from suppliers, he said, “If you have a good relationship with your supplier, they can give you products on credit. It is a function of the relationship you have with your supplier.

Obviously, the way the market works, if you have it on credit you pay a little bit more.”

The Chairman of IPMAN South-west Zone, Dele Tajudeen, stated this in an interview with the News Agency of Nigeria (NAN) in Ibadan on Friday, June 30.

While asking Nigerians not to engage in panic buying and disregard the rumors, Tajudeen said

“I want to disabuse the mind of the people that they should not panic about it, there is no cause for alarm, we are in control, and there is nothing like that. So, people should be rest assured that there is no way they can buy petrol more than the price it is being sold now. If we look at the price from NNPC retail limited, which is an integral part of NNPC limited, they have more advantages than independent marketers and major marketers. So, it was the retail price that they announced they had never given a specific price to the independent marketers. However, I have read what somebody put into the paper; it is just speculation and not a reality. Nothing like that. I want to assure the masses.

There is no how the price can go to N700 as we speak because even if the FX is N700 or N800, that has not nothing to take the price of petroleum from N500 to N700” Tajudeen said

He noted that the product had been deregulated. Hence, the price differential was due to transportation as it is related to location.

”If you are moving products within Lagos, the price may not be more than N300,000, but if you are moving up to Ibadan or thereabout, it could be as much as N500,000. And if you are going to Ilorin, it could be as high as N700,000, that would account for the differential in prices. I want to say with all sense of authority that as of today, within Lagos metropolis, nobody should sell more than N515 to N520 per litre.

Though NNPC has given us the price but the reality of it is that what we buy from the market; because NNPC limited is not the only source for our product; we get from private depots. So, whatever we buy is what we put our own margin and sell.

But as of today, the highest you can get anywhere should be around N550; Lagos N510 per litre; Ogun State between N500 and N520” Tajudeen said

Tinubu had earlier on Monday, in Abuja, affirmed that his administration would not continue to pay subsidy on petroleum products.

He said given the high opportunity cost the Federal Government was suffering to fund subsidies, it was no longer justifiable to continue.

“The fuel subsidy is gone!” Tinubu exclaimed during his inaugural address at Eagle Square, Abuja, shortly after he was sworn-in as the 16th President of Nigeria.

The President said “Subsidy can no longer justify its ever-increasing costs in the wake of drying resources. We shall instead re-channel the funds into better investment in public infrastructure, education, health care and jobs that will materially improve the lives of millions.

“We commend the decision of the outgoing administration in phasing out the petrol subsidy regime which has increasingly favoured the rich more than the poor.”

Tinubu said since there was no provision for subsidy in the budget from June 2023, and it stands removed.

On his economic agenda for the next four years, Tinubu said his administration would target a minimum annual GDP growth of six per cent. To do this, the new government will enact budgetary and tax reforms that will boost the economy and address multiple taxation that stymies foreign direct investment.

“On the economy, we target a higher GDP growth and to significantly reduce unemployment. We intend to accomplish this by taking the following steps: First, budgetary reform stimulating the economy without engendering inflation will be instituted.

“Second, industrial policy will utilize the full range of fiscal measures to promote domestic manufacturing and lessen import dependency.

“Third, electricity will become more accessible and affordable to businesses and homes alike. Power generation should nearly double and transmission and distribution networks improved. We will encourage states to develop local sources as well.”

To foreign and local investors, he said “Our government shall review all their complaints about multiple taxation and various anti-investment inhibitions. We shall ensure that investors and foreign businesses repatriate their hard-earned dividends and profits home.”

However, reacting on Monday, IPMAN said it was opposed to the new president’s subsidy removal plan.

The National Public Relations Officer, Independent Petroleum Marketers Association of Nigeria, Chief Ukadike Chinedu, said the new government should dialogue with marketers before taking the decision to remove subsidy.

“We are not in support of the removal of fuel subsidy at this time. We have said it repeatedly that our refineries should be fixed before taking such decision that will cause galloping inflation and inflict more hardship on the masses.

“The government of President Tinubu should not adopt what is in the transition document handed over to it by the administration of former President Muhammadu Buhari. Someone (Buhari) who for eight years did not remove subsidy is advising a new government to remove it.

“That is not fair and should not be adopted. Rather the new government should sit and discuss with marketers and other stakeholders on how to manage the fuel subsidy regime. We now have the Dangote Refinery, but all our refineries are still not working, so we don’t think removing subsidy is the right thing to do now,” Ukadike stated.

He said IPMAN was ready to work with the new government and would proffer measures to address the fuel  subsidy regime, instead of effecting an outright halt in subsidy.

When contacted to state their position on the issue, the Petroleum and Natural Gas Senior Staff Association of Nigeria stated that it would not comment on the development now, as it was currently studying the new administration.

“We wouldn’t want to comment on the fuel subsidy removal matter now because we are still studying the situation and the new government of President Tinubu,” the General Secretary, PENGASSAN, Lumumba Okugbawa, stated.

It was gathered on Saturday that the Nigerian National Petroleum Company Limited, Major Oil Marketers Association of Nigeria, Depot and Petroleum Products Marketers Association of Nigeria, Independent Petroleum Marketers Association of Nigeria, security agencies and the downstream regulator had all agreed that petrol be sold at N195/litre.

Oil marketers said the agreement was reached at a meeting in Abuja on Tuesday, as participants resolved that beginning from Monday, February 6, 2023, the pump price of petrol should not exceed N195/litre, a development which dealers, particularly independent marketers, described as tough due to the high ex-depot price of the commodity.

They told our correspondent that to avoid having their outlets sanctioned, many filling stations operated by independent marketers would be shut from Monday as it made no business sense to sell a product lower than the cost price.

This is likely to further prolong the petrol scarcity and queues in many parts of the country as independent marketers control about 80 per cent of filling stations nationwide.

IPMAN’s National President, Debo Ahmed, told our correspondent that the approved ex-depot price of petrol was recently raised from N148/litre by the NNPCL to N172/litre, but depots hardly dispense the commodity at this cost.

Ahmed, who was reacting to the notice to members issued by the Public Relations Officer, IPMAN Ibadan Depot branch, Mojeed Adesope, stated that marketers were advised to sell the product in stock now before the enforcement begins on Monday.

In the memo, which was sighted on Saturday, Adesope said, “The top management of NNPC, other relevant authorities in the downstream sector of the economy as well as all the security agents in the country met at on Tuesday, January 31, 2023 to begin the enforcement of pump price of PMS at N195/litre at all the filling stations across the country with Immediate effect.

“Towards that end, enforcement will commence effective from Monday, February 6, 2023 to enable you to dispose of all your remaining stock on or before the enforcement date.

“Members are hereby implored not to purchase products that they would not be able to dispense at N195/litre. The above information should be given wider spread/circulation in order not to get any member caught unawares. You are strongly advised to heed this information.”

Commenting on this, the national president of IPMAN said the information was in order as he urged other independent marketers to take note.

Ahmed stated, “The information is in order, because the depots that the NNPC gives products to are selling at a higher price, and IPMAN members will not like to leave their stations idle. And to avoid sanctions, it is better to close your station.

“So what is going to happen in essence is that marketers have to buy products using the NNPCL loading tickets, and if they don’t have the tickets, all they have to do is to close down their stations. You have to buy from the NNPCL in order to sell at the government regulated price.”

He said the NNPCL was the only importer and it often gave the product to DAPPMAN to sell to IPMAN members at a regulated rate.

Ahmed added, “They also give the product to MOMAN to sell through the stations of major marketers, but DAPPMAN has to sell to independent marketers because independent marketers do not have depots.

“The 21 NNPCL depots across the country that we rely on before now are all moribund and not working. So right now, we depend on DAPPMAN depots to get our products at the price approved by the NNPCL.

“But most times, DAPPMAN would increase their price and when you buy from them at such a high price, there is no way you are going to sell at a lower price. So, that memo is telling marketers that if they cannot get the NNPCL product to buy at the controlled price, they better not sell to avoid having their stations sealed.”

When asked for the approved price that the government, through the NNPCL, had asked depot owners to sell, Ahmed replied, “In fact, there is a lot of confusion.

“As of today, we are supposed to buy at N172/litre from the NNPCL designated depots run by DAPPMAN. But if you get there at times, you don’t buy at that price; rather, you buy at higher rates.

“Before it was N148/litre, but all of a sudden, the NNPCL just did what it did and increased the price to N172/litre, which was why they said the retail price should now be N185/litre.”

He explained that the N172 ex-depot price was without the cost of conveying petrol to wherever the marketer was taking the product to.