- Petrol landing cost drops to N971/litre – Report
The Independent Petroleum Marketers Association of Nigeria has secured an agreement with Dangote Refinery to lift products directly.
IPMAN National President, Abubakar Garima, announced this in Abuja on Monday after a meeting of the National Working Committee of the Association.
He said the partnership will ensure steady and affordable supply of PMS products nationwide.
Girima said after meeting with Aliko Dangote and his management team in Lagos, “we’re pleased to announce that Dangote Refinery has agreed to supply IPMAN with PMS, AGO, and DPK directly for distribution to our depots and retail outlets.”
Garima urged IPMAN members to support Dangote Refinery, citing backward integration benefits and positive impacts on Nigeria’s Foreign Exchange market.
Regarding pricing, Garima expressed confidence negotiations with Dangote would yield lower rates.
On Compressed Natural Gas, the IPMAN President said the association was preparing for a seamless transition to CNG refill stations nationwide as it is currently negotiating with the presidential CNG initiative
This partnership is expected to increase efficiency, affordability, and economic growth for Nigeria’s petroleum industry.
At the meeting the Dangote Refinery, pledged to commence supply of products to over 30,000 IPMAN members and 150,000 retail outlets nationwide.
This move is expected to eliminate middlemen, reduce costs, and ensure steady supply.
Earlier, IPMAN had expressed frustration at how difficult marketers were finding it to lift products from the Dangote Refinery.
IPMAN lamented that its members can’t load petrol from the Dangote Refinery in Lagos despite having paid ₦40bn to the Nigerian National Petroleum Company Limited.
However, Dangote Refinery refuted the claim by IPMAN, clarifying that it has not received any payments from IPMAN to purchase refined petroleum products.
It stated that although discussions were ongoing with IPMAN, “it is misleading to suggest that they (IPMAN members) are experiencing difficulties loading refined products from our Petroleum Refinery, as we currently have no direct business dealings with them.”
Consequently, the company said it cannot be held responsible for any payments made to other entities, as the payment in mention has been made through NNPCL, and not Dangote Refinery.
It added that in the same vein, NNPCL has neither approved, nor authorised the company to release our Premium Motor Spirit (PMS) to IPMAN.
While emphasizing that it can meet Nigeria’s demand for all petroleum products, Dangote Refinery advised IPMAN to register directly with the company and make payments for petroleum products.
Petrol landing cost drops to N971/litre – Report
However, the estimated cost of landing Premium Motor Spirit, commonly known as petrol, on Nigeria’s shores has seen a considerable reduction of 20.34 per cent, dropping to N971.57 per litre over the past three months.
This decline in landing cost, which reflects the price of importing and distributing the product, indicates some relief in terms of global market fluctuations and supply chain factors.
However, despite this reduction, the retail price of petrol in Nigeria has sharply increased by N443, or 71.79 per cent, from N617 per litre on August 1, 2024, to N1,060 per litre by November 8, 2024.
According to data released by the Major Energies Marketers Association, in its competency centre daily energy bulletin, oil marketers imported petrol at N1,219 per litre at a Brent crude oil price benchmark of $80.72 per barrel and at an exchange rate of N1,611 per dollar in August. Petrol sold at N617 per litre during this period.
But in November, with an estimated landing cost of N971.57, Brent crude price benchmark of $75.57 per barrel and an exchange rate of N1,665.84 per dollar, the product currently sells at N1,060 at the Nigerian National Petroleum Company Limited retail station and N1,180 at stations owned by independent marketers.
The document also showed that the landing cost stood at N945.63 in September 2024 and N903.64 per litre in October 2024. This increase, despite falling landing costs, can be attributed to factors such as the ongoing deregulation of the fuel market, fluctuations in the exchange rate, rising inflation, and the broader economic challenges facing the country.
However, experts say they expect the reduction would lead to a corresponding drop in the retail price of petrol.
On Sunday, the Nigeria Labour Congress accused fuel marketers of inflating petrol prices, claiming the pump price is significantly higher than the actual market value.
The NLC in a communiqué released following its National Executive Council meeting, contended that Nigerians are being exploited, with citizens enduring heightened suffering and hunger due to government policies that are pushing many into destitution.
The organization’s call underscores its growing concerns over the economic strain on Nigerians and its commitment to holding both fuel marketers and the government accountable for citizens’ welfare.
