The Independent Petroleum Marketers Association of Nigeria (IPMAN) has stated that its choice to purchase petrol from either the Nigerian National Petroleum Company (NNPC) Limited or the Dangote Petroleum Refinery will be determined by who offers the most competitive price.
Ukadike Chinedu, IPMAN’s National Publicity Secretary, explained that following NNPC’s recent clarification that it is not the exclusive distributor of Dangote’s petroleum products, marketers now have the flexibility to source petrol from any supplier offering the best deal.
“With NNPC confirming they are not the sole off-taker of Dangote’s petrol, we will choose whichever supplier provides a more affordable option. If NNPC imports petrol at a lower price than Dangote, we will buy from NNPC,” Chinedu said in a statement on Monday.
This decision aligns with the ongoing implementation of the Petroleum Industry Act (PIA) and the government’s removal of petrol subsidies, leaving fuel prices to be dictated by market forces of supply and demand. Chinedu believes this competition between NNPC and Dangote Refinery will ultimately help drive prices down.
Additionally, IPMAN is in talks with international partners to explore fuel import options should imported products become more cost-effective.
“We control about 80% of the filling stations nationwide. If Dangote’s petrol is cheaper, we will buy from him. However, if importing is more economical, we will go with that,” Chinedu emphasized.
IPMAN’s National Operations Controller, Mustapha Zarma, echoed this sentiment, stating that the association’s purchasing decisions will be based on which supplier offers the best return on investment. He also mentioned that IPMAN plans to contact Dangote Refinery’s sales department soon to evaluate their pricing.
“Our decision will be guided by who offers competitive pricing that ensures profitability. Healthy competition in the market will prevent monopolies and ensure that pricing is driven by supply and demand, much like the current situation with diesel,” Zarma noted.
Last week, NNPC denied reports suggesting it would act as the sole distributor of products from the Dangote Refinery. Instead, NNPC clarified that both Dangote and other domestic refineries are free to sell directly to marketers, fostering a competitive and open market.
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