We Are Ready for Business: IPMAN President Speaks Out Strongly
The National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN) has assured Nigerians that once the association starts lifting premium motor spirit (PMS) from the Dangote Refinery, the public will benefit from favorable prices, as crude oil is sold to the refinery in naira. Despite this, the Petroleum Retail Outlets Owners Association of Nigeria (PETROAN) remains committed to continuing fuel imports, citing concerns over refinery output and business sustainability.
Maigandi reassured that there is no cause for concern, addressing reports that the Nigerian National Petroleum Company (NNPC) Limited has ended its exclusive purchase agreement with the Dangote Refinery. This development opens the market for other marketers to directly source petrol from the refinery, which has a capacity of 650,000 barrels per day. Maigandi’s comments suggest a more competitive environment that could benefit consumers and petroleum marketers alike.
Although neither NNPCL nor Dangote Refinery has confirmed or denied the reports, the move suggests that NNPC will no longer serve as the sole buyer, allowing other marketers to directly negotiate prices with Dangote Refinery. Maigandi, speaking for IPMAN, welcomed this development, stating that if NNPCL can purchase directly, so should they. He noted that concerns over pricing should not be an issue, pointing out that they currently buy petrol from NNPC at over ₦800 per litre, but expressed optimism about how things will unfold.
Maigandi expressed confidence that selling crude oil to Dangote Refinery in naira would result in favorable pricing for Nigerians. He reassured that IPMAN is fully prepared to commence business and urged citizens not to worry about fuel prices. According to him, once they begin lifting petrol directly from the refinery under the naira sales regime, consumers will be pleased with the outcome, promising that this move will bring relief to the public.
He explained that independent marketers had not previously purchased Dangote petrol from NNPCL because they were waiting to see the pricing structure. He added that while they are open to any terms, their preference is to source directly from Dangote Refinery, which is the most suitable option for them. Meanwhile, Dr. Muda Yusuf of the CPPE emphasized the need for more transparency from NNPCL, pointing out that current pricing suggests a partial subsidy and urged clarity on whether the government plans to fully deregulate PMS prices.
He pointed out that, as a private company with loans to repay, Dangote Refinery must operate at market prices. This means that if all marketers begin purchasing directly from Dangote, it would signal the complete removal of any fuel subsidies. He also noted that the recent policy of selling crude oil in naira to the refinery might enable Dangote to sell at a similar price to what NNPCL previously offered, potentially compensating for the prior subsidy and benefiting all parties involved.
From a social standpoint, completely deregulating petrol prices at this time would be unwise given the current challenges Nigerians are facing, according to Yusuf. He urged the NNPC to address the situation publicly, as continued silence could lead to confusion and speculation. Yusuf recommended that the government maintain the current marginal subsidy on petrol to protect the most vulnerable members of society and prevent further economic strain.