The Independent Petroleum Marketers Association of Nigeria (IPMAN) has declared that it will buy petrol from either the Nigerian National Petroleum Company (NNPC) Limited or Dangote Petroleum Refinery, depending on who offers the best price.
IPMAN’s national publicity secretary, Ukadike Chinedu, said the association is prepared to buy from either Dangote or NNPC depending on the prices they offer.
Chinedu noted that the NNPC’s clarification that it is not the sole off-taker of Dangote products gives dealers the freedom to source products from any cheaper supplier.
“Now that NNPC has said they are not the sole off-taker of Dangote petrol, it then means that the price of the product would determine where we are going to buy it. If NNPC imports the product and its price is cheaper than that of Dangote, we will buy from NNPC,” Chinedu said.
He said the current situation reflects the implementation of the Petroleum Industry Act (PIA) and the government’s removal of petrol subsidies, with petrol pricing now determined by market forces of demand and supply.
According to Chinedu, this competition will eventually lead to lower prices.
Regarding potential importation plans if imported petrol becomes more affordable, Chinedu disclosed that IPMAN’s national president, Abubakar Maigandi, has begun discussions with investors to secure funding based on current market trends.
“So, we are talking with some foreign partners because you need to understand that independent marketers are the highest buyers of diesel from the Dangote refinery because we control about 80 per cent of the filling stations nationwide,” he added.
“So, if Dangote PMS is cheaper, we will buy it, but if importation is cheaper, we will go for it.”
IPMAN’s national operations controller, Mustapha Zarma, also stated that the decision to buy from Dangote or NNPC would be based on which supplier offers a better return on investment and required margins.
Zarma noted that the association plans to contact the Dangote refinery’s sales department soon to determine the price.
He stated, “We may contact the refinery’s sales department this week to find out the price, If the price is competitive enough for one to buy and get his return on investment and the required margin, then we wouldn’t mind purchasing directly from him to complement what NNPC is bringing in or what NNPC would buy from Dangote.
“I believe that we are going to analyse the price of Dangote petrol and see the advantages of buying from Dangote viz-a-viz importation. Whichever we feel is cheaper will automatically attract everybody, especially if importation is cheaper.”
