The Independent Petroleum Marketers Association of Nigeria (IPMAN) has failed to disclose the petrol price agreed with Dangote Petroleum Refinery despite claiming that Nigerians will soon begin to buy cheap premium motor spirit (PMS) following its agreement with the refinery.
On Monday, IPMAN’s National President, Abubakar Garima, said in Abuja at a press conference that the association would begin direct lifting of PMS from Dangote refinery. He claimed that this would promote availability of petroleum to Nigerians at a cheaper rate.
“Following our recent meeting with Alhaji Aliko Dangote and members of his top management staff in Lagos, we are happy to state that Dangote Refinery has 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 will ensure a steady and ceaseless supply of PMS products all over Nigeria at an affordable rate for Nigerians also,” he noted.
READ ALSO: We sell petrol at N990/litre for trucks, cheaper PMS is substandard – Dangote Refinery
However, he did not disclose the price at which the association agreed with Dangote refinery and what he meant by “affordable rate.”
IPMAN prevarication
On Tuesday, National Assistant Secretary of IPMAN, Mr Yakubu Suleiman, said on Arise Television’s Morning Show programme that “we have an agreement with Dangote refonery that will favour Nigeria.”
When asked to disclose the price agreed with Dangote refinery, he said, “Our national president will come out and tell Nigerians the price we agreed with Dangote. Between today and tomorrow (Tuesday and Wednesday), we will inform Nigerians the price at which we agreed with Dangote.”
What is affordable rate?
Some analysts say there was no agreement at all between IPMAN and Dangote refinery, arguing that any resolution without price would be meaningless.
On October 30, 2024, the Nigerian National Petroleum Company (NNPC) Limited increased the retail price of petrol in Abuja to N1,060 from N1,030 per litre after raising prices three times earlier in two months. Prices in Lagos were slightly lower.
However, right now, petrol sells between N1,020 and N1,100 per litre at various filling stations across Nigeria, which represents five times increase since President Bola Tinubu came to power on May 29, 2023.
What then does IPMAN mean by “affordable rate” when it has failed to disclose the price at which Nigerians would buy petrol at its members’ filling stations.
“Well, it is just another half-truth,” said a Delta State-based Petroleum Engineer, Mr Charles Komas. “It is impossible for them to get it at cheaper rate from Dangote refinery because the refinery sells at international rates. Dangote sells at N970 per litre based on what I learnt. When you consider logistics costs for those taking the petrol from the Lagos refinery to Port Harcourt or Delta, you will discover the price will be equal to what we buy now,” he said.
A petrol marketer, who preferred anonymity, said he did not expect to get PMS from Dangote refinery at any cheaper rate.
He said the landing cost would differ based on locations, noting that the price would not be any different.
What has changed in less than two weeks?
In earlier in November, National Assistant Secretary of IPMAN, Mr Suleiman, had claimed that members of the association would go for more affordable options at other depots across Nigeria than the high logistical costs associated with buying petrol from the Dangote refinery, Economy Post had reported.
“If Dangote has a product selling for N1,000, let’s assume, and there’s another place selling for N900, we can’t just say, for the sake of our relationship with Dangote, that we will instruct our members to buy there. We must go where the price is lower, where we will get profit,” he had said in disagreement with President of Dangote Group, Mr Aliko Dangote, who had claimed that marketers were not buying his products.
READ ALSO: Dangote’s petrol price is higher than imported PMS – Marketers
“As of last week, Dangote’s price was higher than other places. Crude prices are coming down internationally, but Dangote’s rate was N995 per litre, and you have to arrange for your own cargo and loading. With additional costs for transport and depot fees, how can we sell it at the final outlet?” he had asked.
Analysts are now asking what has changed since early November when IPMAN even claimed Dangote refinery was aiming to monopolise the petrol market.
“Well, I think the government may have intervened,” said an energy analyst, Dr Dom Nwoye.
“However, I do not see it lasting too long without IPMAN crying “monopoly” again and wanting to revert to importation. This is the reason: If oil price rises in the global market, Dangote may raise prices. If it falls, will the refinery also lower prices? If it does not, IPMAN will revolt.”
