IPMAN: We need NNPC’s letter on new price

From John Ofikhenua, Abuja

IThe Independent Petroleum Traders Association of Nigeria (IPMAN) is looking forward to receiving a letter from the Nigerian National Petroleum Corporation (NNPC) before meeting the new N108 gas pump price per liter.


Its national vice president, Alhaji Abubakar Maigandi, told the The nation over the phone on Thursday that the Corporation would approve once marketers exhausted their stock at the previous price.

Despite NNPC's announcement of a reduction in the price of the product pump from N145 to N125. 50 per liter on March 30, virtually all points of sale, including the company's affiliates, still maintained the previous price.

But Maigandi, who praised the federal government for the downward revision of the pump price, said marketers still buy gasoline at N111 per liter, even when NNPC announced the N125's penultimate price reduction. 50 per liter.


He said: "Immediately we receive requests from the government, we can reduce the price".

Regarding why marketers refused to comply with the previous price reduction announcement, he said: “Now we have the old stock, as soon as the old stock is finished, I know that we will receive the order from the government and then we will revert for the new price. "


He said the supply of gasoline from the depots was fair, but “they (depots) did not start selling at a new rate. We also expect them to start selling at the new rate, so we can adjust as well. The deposits are still selling at N111 per liter. "

Maigandi said it was the same rate that the deposits sold while the government determined that gasoline should be sold for N125 per liter, saying that the rate the Petroleum Equalization Fund (PFE) paid to traders was too slow.

Meanwhile, IPMAN President Chinedu Okoronkwo called for an increase in local gasoline refining to mitigate the impact of the fall in global oil prices on the country's economy.

He told the Nigeria News Agency that the Federal Government should encourage investment in the establishment of modular refineries in the country.


“Not everything is bleak. This will allow many people to see opportunities to refine our products locally and we believe that the government can encourage this by encouraging them.


When we refine here locally, we can even sell below what we are now selling to Nigerians, which will be good for our economy.

"We need more modular refineries so that we can take advantage of these resources from God," said Okoronkwo.

He said the recent reduction in the Premium Motor Spirit's Ex-Depot Price by the National Petroleum Corporation of Nigeria (NNPC) from N113.28k per liter to N108.00K per liter was not surprising due to the removal of the subsidy.

Okoronkwo said: “The announcement of the new ex-deposit price is what you should expect under an unregulated regime.

“There is no more subsidy and it is the market value that determines the price.

"We started the journey to completely deregulate the market, as what is possible to obtain in the AGO (diesel), and we will get there gradually".

He also explained why some marketers were still selling PMS at N125 per liter, despite reductions made in the past few weeks to the product.

Okoronkwo said: “This is not about price reduction compliance, because some people may even sell below the current price.

”The market is not being regulated again, so it depends on the marketer to do what will attract customers.

"There is availability of products and customers and they have the right to choose where they want to buy fuel, and these gas station owners know that," he said.

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