Independent oil marketers in Nigeria are advocating for direct supply of premium motor spirit (PMS), commonly known as fuel, from the Nigerian National Petroleum Company Limited (NNPCL). Abubakar Maigandi, the National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), emphasized in a recent interview that they could sell fuel at rates below those at NNPCL retail stations if they had direct access to the product from the national oil company.
Maigandi identified the primary challenge faced by independent oil marketers as the NNPCL’s reluctance to supply the product directly from its depot. While the NNPCL reportedly sells fuel to private depot owners at N557 per litre, independent marketers acquire it from third parties at N630 per litre. This difference contributes to the selling price of petrol reaching around N650 and above by IPMAN members, who constitute 80% of the market share.
The IPMAN president expressed that their major hindrance is the indirect procurement of fuel through third parties, leading to increased costs. He argued that if they could source directly from the NNPCL, they could potentially sell below the NNPCL rate, benefiting consumers. Maigandi highlighted that the association, representing 80% of retail outlets nationwide, had informed the Federal Government about their challenges and anticipated appropriate actions to alleviate the situation.
He clarified that IPMAN stations, purchasing petrol at N630 per litre from private depots, face additional expenses such as transportation costs, leading to a higher margin. Direct procurement from the NNPCL would streamline the process and potentially result in a more affordable product for consumers. Maigandi highlighted that NNPCL stations, obtaining fuel at N556 per litre, sell around N580 or below.
The National President of IPMAN reiterated the association’s importance, covering both urban and rural areas, and emphasized the need for solutions to benefit the majority of consumers. Maigandi also disclosed the association’s previous complaint against the NNPCL, accusing it of holding over N300 billion of its members’ money meant for purchasing PMS, a claim that the NNPCL refuted.
As the sole importer of petroleum products into the country, the NNPCL plays a pivotal role in the fuel supply chain. The call for direct supply by independent oil marketers sheds light on the complexities of the industry and the potential impact on fuel prices for consumers if addressed appropriately.
