Independent Petroleum Marketers Association of Nigeria (IPMAN) on Monday said Nigerians should expect a drop in petrol price now that its members have been granted direct access to buy from the Dangote Refinery.
IPMAN’s National President, Abubakar Shettima, disclosed this at a stakeholders’ meeting on cost-reflective pricing of petroleum products, organised by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in Abuja on Monday.
“And I thank God now, Dangote refinery has accepted the independent petroleum marketers to start purchasing their product directly. So, it’s a plus. So, very soon, the populace will see the change in terms of price,” Mr Shettima said.
For years, IPMAN, owner of over 70 per cent of Nigeria’s retail stations, has sourced most of its products from third-party depots.
Speaking on the current pricing trend, he explained that petroleum marketers have already begun reducing pump prices gradually across the country, and are prepared to go lower once their margins are protected.
“The price of the product varies bit by bit, even when the price was increased, if you see, we didn’t increase the price at the same time. Likewise, now, we have started reducing the price, if you observe very well.
“So, the price is coming down, and I assure Nigerians, independent petroleum marketers are ready to crash down the price at a required rate. Provided that if we can mark our margin and get a profit at any rate, we can be able to sell to the populace.
“If you check the price all over the country, you will see that independent petroleum marketers are reducing their price bit by bit. Presently, just as I have said, we have reduced to N125 per litre; for every litre which people used to consume before, there is a reduction of N125 nationwide,” he said.
He added that marketers are ready to push prices further down once supply terms are favourable.
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“Yes, just as I have 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. It depends on the way we buy the product from the private depot owners and Dangote refinery.”
Beyond petrol pricing, IPMAN urged the government to allow the local refinery to function properly.
“Our major concern is a balanced distribution system. We want a situation whereby IPMAN buys the product directly from the Dangote refinery. But also, if we request importation, IPMAN should be allowed to import by itself.
“So, what we are trying to encourage we are trying to encourage our local refinery, so let the government allow the local refinery to function properly, and assist those who intended to do refining too,” he added.
