Sh**ck! IPMAN Unveils Key Reason Behind Petrol Price Reduction

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has attributed the recent drop in petrol prices to intensified competition between Nigeria’s two major refineries: Dangote Refinery and the Nigerian National Petroleum Corporation (NNPC) Limited.

Recent market checks show a noticeable reduction in pump prices at major retail outlets, in response to lower ex-depot prices from both Dangote Refinery and the Port Harcourt Refinery.

For instance, NNPC Retail lowered its pump price from ₦1,030 to ₦965 per litre, while AA Rano and AYM Sharfa reduced their prices from ₦1,070 to ₦1,020 per litre.

However, some retailers, like Conoil, have maintained higher prices, with petrol still being sold at ₦1,090 per litre, unchanged since November.

In an interview with Vanguard, IPMAN’s Public Relations Officer, Chief Chinedu Ukadike, emphasized the positive effects of the competition between the local refineries on both price stability and availability of fuel.

He said, “This is a great development for both independent marketers and consumers. Typically, prices rise due to increased demand during this period, but we are seeing the opposite now. Availability is no longer an issue, and we’re witnessing a price war between NNPC and Dangote.”

Ukadike also mentioned that with the Warri and Kaduna refineries expected to come online next year, the situation would improve even further.

He pointed out that independent marketers can now purchase directly from both refineries, noting, “There’s been a slight increase in turnover. When the price was around ₦1,300 per litre, many of our members barely sold 5,000 litres daily, but now we are doing much better.”

“We can also buy directly. The NNPC portal is now open for marketers to take as much product as needed. Dangote has responded to our request and reduced the volume for bulk purchase eligibility, which was initially limited to 10 million litres but has now been reduced to 2 million litres, roughly ₦2 billion. This makes it more manageable for independent marketers, who can now join forces to place orders for the product.”