NNPC Agrees to Sell Petrol to IPMAN at N995/Litre Following DSS Intervention

The Nigerian National Petroleum Company Limited (NNPC) has agreed to sell Premium Motor Spirit (PMS), commonly known as petrol, to members of the Independent Petroleum Marketers Association of Nigeria (IPMAN) at N995 per litre. This decision was reached after the Department of State Services (DSS) stepped in to mediate ongoing disputes between the two parties.

Hammed Fashola, the National Vice President of IPMAN, confirmed the resolution in an interview, highlighting the role of the DSS in resolving various challenges faced by petroleum marketers. He also mentioned that, through DSS intervention, the Nigerian Midstream and Downstream Petroleum Regulatory Authority agreed to settle a long-standing N10 billion debt owed to IPMAN and address the issue of direct petrol supply from the Dangote refinery.

“We appreciate their intervention, which has helped broker peace and mutual understanding. All parties have now agreed to work together,” Fashola stated.

When asked about the new petrol pricing, Fashola confirmed, “Tentatively, the NNPC is offering us N995 per litre.”

The reduced ex-depot price is expected to lead to a modest drop in petrol prices across the country. However, Fashola noted that transportation costs would still affect prices, with some IPMAN members selling at around N1,200 per litre depending on the location. He added that the association is working to ensure a more uniform pricing model.

“The disparity in prices has placed independent marketers at a disadvantage compared to NNPC Retail and major marketers. Now that we are addressing supply issues, we expect the price gap to narrow,” Fashola explained.

The IPMAN leader also commented on the current queues at filling stations, stating that the price differences have led to confusion among consumers, resulting in longer lines at stations with cheaper fuel.

Looking ahead, IPMAN is set to meet with Dangote representatives to finalize details of direct fuel supply from the Dangote Refinery. The Federal Government recently approved the move, allowing marketers to purchase directly from the local refinery, which could further impact fuel prices.

Fashola reassured that while IPMAN will explore all supply options, including from Dangote, the association will continue to do business with the NNPC if the price remains competitive.

The dispute between NNPC and IPMAN has been simmering in recent months. IPMAN previously expressed concerns over NNPC’s pricing structure, claiming that while the company buys petrol from Dangote Refinery at N898 per litre, it has been selling to independent marketers at N1,010 per litre in Lagos and even higher in other states. This price difference had sparked tension, with IPMAN members threatening to halt operations unless a resolution was reached.