IPMAN Claims Members Have Deposited Approximately N15bn into NNPCL Account Without Receiving Products

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has raised concerns about a potential fuel shortage as the prices of petroleum products continue to rise. Continue Reading>>>...CONTINUE READING>>>

During a press conference in Ilorin, the association’s National Public Relations Officer, Alhaji Okanlawon Olanrewaju, highlighted the troubling disagreement with the Nigerian National Petroleum Company Limited (NNPCL), warning that the pricing policies from NNPCL could pose significant difficulties for both marketers and consumers.

Olanrewaju stated that NNPCL is selling petrol to independent marketers at N1,010 per litre, which is higher than the prices offered at its own retail stations. He remarked, “The issue IPMAN is facing in the downstream oil sector is quite perplexing.

The prices being imposed on us by NNPC are excessive.” This situation is particularly alarming as IPMAN members have deposited around N15 billion into the NNPCL account for fuel supplies, but they have yet to receive any product in return.

This pricing dilemma has placed marketers in a precarious position, especially given their already high operational costs. Olanrewaju pointed out that if these prices do not change, it could severely hinder their ability to effectively serve the public. “We may not survive under these conditions because we’ll have to sell to the same public,” he warned. The association has indicated that it may cease operations if the pricing issues are not addressed, which could trigger widespread fuel shortages throughout Nigeria.

Additionally, the IPMAN spokesperson criticized NNPCL’s monopoly on fuel distribution from the Dangote Refinery, arguing that allowing more market players would encourage competition and lower prices. “NNPC should not be the only buyer of Dangote fuel. Opening it up would significantly reduce prices,” he claimed.

As fuel prices climb—recently reaching N1,030 per litre at some retail stations—public dissatisfaction is growing. Many Nigerians are already feeling the effects of previous price hikes, which have surged over 430% since May 2023. Continue Reading>>>

In light of the situation, Olanrewaju has called for immediate government action to resolve these issues and shield both marketers and consumers from further economic hardship. He noted that many marketers rely on bank loans to finance their operations, which come with high-interest rates. “The economic expectations being placed on us are unrealistic,” he said.

The ongoing conflict between IPMAN and NNPCL underscores the challenges within Nigeria’s oil sector as it moves towards deregulation. With a National Executive Council meeting planned for next week, IPMAN members are preparing to discuss their next steps in response to this escalating crisis. As tensions rise and talks continue, the threat of fuel scarcity looms large over Nigeria’s already struggling economy.