The Independent Petroleum Marketers Association of Nigeria (IPMAN) has announced that the price of Premium Motor Spirit (PMS) is likely to drop following an agreement with Dangote Refinery to lift products directly from the facility.
Abubakar Garima, the president of IPMAN, disclosed this in an interview on Tuesday.
Garima explained that direct purchase from the 650,000-barrel-per-day (bpd) refinery will eliminate payments to intermediaries, such as the Nigerian National Petroleum Company (NNPC) 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,” Garima said.
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 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 Dangote refinery, the issue of delay is totally eliminated. Immediately, we get the product, we discharge to our filling stations,” he added.
NNPC Paying Off Debt to Marketers
Furthermore, Garima revealed that the NNPC has begun settling its N4 billion 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 to us now.
“The only thing still is that there are some remaining balance 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.
Backstory
Nairametrics previously reported that the Independent Petroleum Marketers Association of Nigeria (IPMAN) has entered into an agreement with Dangote Refinery to directly lift premium motor spirit (petrol), diesel, and other petroleum products.
IPMAN National President, Abubakar Garima, announced this development in Abuja after a meeting of the Association’s National Working Committee.
This agreement follows months after the Nigerian National Petroleum Corporation (NNPC) suspended its plan to serve as the sole off-taker of petroleum products from the 650,000-barrel-per-day refinery.
Garima noted that the collaboration aims to ensure a consistent and affordable supply of Premium Motor Spirit (PMS) and other products nationwide.