Marketers Quote New Petrol Price After New Agreement With Dangote
- IPMAN says petrol prices could drop below N800 per litre following a new direct purchase agreement with Dangote Refinery
- The association said independent marketers will no longer rely heavily on private depot owners, helping to lower fuel costs
- The development comes as the federal government urges marketers to reflect falling crude oil prices in pump prices
Legit.ng journalist Dave Ibemere has experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has expressed optimism that petrol prices may crash below N800 per litre following a direct purchase agreement with the Dangote Petroleum Refinery.
Abubakar Maigandi Shettima, the National President of IPMAN, said this in Abuja on Monday, July 6, describing Dangote Refinery’s decision to commence direct sale of petroleum products to independent marketers as a paradigm shift in the downstream petroleum sector
Source: Getty Images
Why petrol prices may crash
According to Shettima, independent marketers will be able to crash petrol pump prices to below N900 once they are able to purchase products directly from the refinery.
He said:
"At any time when there is a reduction of price, we are ready to reduce the price to even below N800, not even N900."
“We (independent marketers) are the people that manage over 70% of retail stations in Nigeria. We previously purchased products through private depots.”
Shettima, who said the supply costs will drop significantly, assured Nigerians that they were ready to crash the price of petrol, BusinessDay reports.
He added:
“The price is coming down, and I assure Nigerians that independent petroleum marketers are ready to crash down the price at the required rate."
The IPMAN president also disclosed that already, marketers have reduced the pump price of petrol by N125 per litre in many areas, owing to the reduction in supply cost.
FG, regulators push for lower petrol price
Punch reports that at the meeting, the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, stressed that lower prices of crude oil in the international market should reflect in lower pump prices for Nigerians.
Source: Getty Images
He warned that it was unhealthy to maintain high fuel prices when the cost of replacing them had dropped, stressing that such action would hinder the nation’s efforts to fight inflation, Punch reports.
Similarly, Rabiu Umar, Chief Executive Officer, Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), said the meeting was called to ensure that the benefits of low international crude oil prices are passed to consumers.
Umar noted:
“Deregulation was meant to promote competition and efficiency, not excessive price increases. The reduction in the cost of replacement products must be passed to Nigerians in a timely and transparent manner."
NNPC petrol prices
In a related development, Legit.ng reported that petrol prices at filling stations operated by the Nigerian National Petroleum Company Limited (NNPC Limited) in Lagos have been adjusted downward again, bringing relief to motorists.
Data obtained showed that NNPC's retail stations across the country are selling between N1,170 and N1,395 per litre, depending on their location.
Lagos and Ogun recorded the lowest pump price at N1,170 per litre from N1,210, while the price list shows that Yobe recorded the highest pump price at N1,395 per litre.
Source: Legit.ng
