DSS Takes Action Amid NNPCL And Marketers Tensions

DSS Takes Action Amid NNPCL And Marketers TensionsThe Nigerian National Petroleum Limited Company (NNPCL) has officially agreed to allow oil marketers under the Independent Petroleum Marketers Association of Nigeria (IPMAN) to begin lifting Premium Motor Spirit (petrol) from its depots at a reduced price.

In a move aligned with the government’s goal to fully deregulate the oil sector, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has also committed to issuing import and off-taker licenses to these oil dealers, enabling them to either import fuel directly or purchase products from the Dangote Refinery.

This development follows a significant threat from IPMAN to halt operations nationwide due to the rising costs associated with loading petroleum products from NNPCL facilities. On Thursday, the association highlighted that while the Dangote Petroleum Refinery was selling petrol to NNPCL at approximately N898 per litre, NNPCL was charging independent marketers N1,010 per litre in Lagos.

IPMAN, which manages over 70 percent of the filling stations across the country, opposed this pricing structure and called for a refund from NNPCL for previous petrol supply payments made by its members. During a live television interview, IPMAN’s national president, Abubakar Maigandi, expressed concerns that the price charged by NNPCL exceeded what the company itself paid for the product from the Dangote refinery. He noted that independent marketers had funds held by NNPCL for about three months, complicating the situation further.

Maigandi stated, “NNPC purchased the product from the refinery at N898 per litre but is asking marketers to buy it at N1,010 per litre in Lagos; N1,045 in Calabar; N1,050 in Port Harcourt; and N1,040 in Warri. Our main challenge is that independent marketers have outstanding debts to NNPC while also being charged these inflated prices.”

However, a recent agreement reached after a peace meeting convened by the Director General of the Department of State Services (DSS), Adeola Ajayi, has allowed NNPCL to permit the loading of products to address the N15 billion owed to marketers.

In an interview with Sunday PUNCH, IPMAN’s National Publicity Secretary, Chinedu Ukadike, confirmed this development. He noted that the meeting, which included a representative from NMDPRA and NNPCL’s Group Chief Executive Officer, Mele Kyari, facilitated concessions that enabled independent marketers to load products.

Ukadike explained, “We were invited by the Director of the DSS to address the ongoing issues between our association and NNPCL. The discussions focused on the non-compliance of selling PMS to IPMAN by Dangote Refinery and the pricing challenges we face with NNPCL. Thanks to the mediation led by our National President Abubakar Maigandi, NNPCL has agreed to make some reductions and allow independent marketers to load the tickets amounting to N15 billion immediately.”

Additionally, it was agreed that the NMDPRA would issue import licenses to IPMAN to facilitate a full deregulation of the sector.

When contacted, NMDPRA spokesperson George Ene-Ita stated that he was unaware of the meeting or any license approvals, saying, “I’m sorry, I am not aware of any meeting or license approval. I was not part of it.”

Meanwhile, the NMDPRA has also committed to making a payment of N10 billion to oil marketers as outstanding payments under the Petroleum Equalisation Fund.

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