- Independent Petroleum Marketers Association of Nigeria claims petrol from Dangote Refinery is priced higher than other suppliers
- The filling station owners urges Dangote Refinery to engage with industry stakeholders to reduce prices and facilitate
- The marketers believe that such reduction will affect the prices of petrol at filling stations in the country
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has claimed that fuel pump prices will reduce if the Dangote Petroleum Refinery reduce prices.
According to them, the cost of sourcing fuel from the facility is higher than other suppliers.
Photo credit: Bloomberg/contributor
Source: Getty Images
Speaking on Arise Television’s Morning, Yakubu Suleiman IPMAN’s National Assistant Secretary, claimed that the independent marketers will always chose to buy cheaper product.
Suleiman explaine:
“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’ll instruct our members to buy there. We must go where the price is lower, where we’ll get profit.”
IPMAN also alleged that despite falling crude prices, Dangote Refinery did not reduced its petrol N995 per liter.
Suleiman stressed that the additional costs make it difficult for IPMAN members to sell at competitive prices but promised that changes will occur if adjustments are made, BusinessDay reports
He said:
“We have to pity Nigerians, IPMAN is trying its best to support the country, especially at this difficult time when people are suffering. We want to source cheaper products to sell at affordable prices for the people.”
IPMAN gives Conditions to reduce petrol prices
IPMAN vit is seeking to engage in direct discussions with major industry stakeholders, including the Major Oil Marketers Association of Nigeria (MOMAN) and the Depot and Petroleum Products Marketers Association of Nigeria (DAPMAN), to find practical solutions for cheaper fuel distribution, which would, in turn, impact pump prices.
He noted:
“If Dangote sold directly to IPMAN at a fair price, fuel costs would have come down in Nigeria by now,” Suleiman emphasized. He argued that allowing IPMAN to purchase at a reduced price could lead to a rapid decrease in pump prices across Nigeria’s independent filling stations.
“We’d go straight to his refinery, pay N995 or N900, and transport it directly to our filling stations. I challenge you—if Dangote did this, you would see prices drop at our retail stations within days.”
Dangote Refinery, Africa’s largest oil refinery is seen as crucial to helping reduce Nigeria’s fuel prices.
Azikiel Refinery concludes plans to roll out petrol
Legit.ng earlier reported that the president of Azikel Group, operators of the Azikel Modular Refinery in Bayelsa, Azibapu Erunani, has disclosed that the facility is unique as it is the only one in Sub-Saharan Africa to refine condensate in addition to petrol, diesel, and aviation fuel.
He disclosed this when the Bayelsa State governor, Duoye Diri, visited the refinery complex in Yenogoa.
Erunani said the facility is worth over $850 million and has about 400 foreign and local employees.
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Source: Legit.ng