IPMAN Announces Potential Petrol Price Drop Below N800
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has expressed strong optimism that petrol prices may crash below N800 per litre following a direct purchase agreement with the Dangote Petroleum Refinery. Abubakar Maigandi Shettima, the National President of IPMAN, made this announcement in Abuja on Monday, July 6, describing the development as a paradigm shift in the downstream petroleum sector.
Direct Purchase Agreement Ends Reliance on Private Depots
According to Shettima, independent marketers will be able to reduce petrol pump prices to below N900 once they begin purchasing products directly from the refinery. He stated: “At any time when there is a reduction of price, we are ready to reduce the price to even below N800, not even N900.” He emphasized that independent marketers manage over 70% of retail stations in Nigeria and previously had to purchase products through private depots, which added significant costs.
Marketers Already Reducing Prices
Shettima assured Nigerians that supply costs will drop significantly, and marketers are ready to crash the price of petrol at the required rate. He disclosed that marketers have already reduced the pump price of petrol by N125 per litre in many areas due to the reduction in supply cost. This move aligns with the federal government's call for lower pump prices reflecting falling crude oil prices.
Government and Regulators Push for Lower Prices
At the meeting, the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, stressed that lower crude oil prices in the international market should translate to lower pump prices for Nigerians. He warned that maintaining high fuel prices when replacement costs have dropped would hinder the nation's fight against inflation. Similarly, Rabiu Umar, Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), said the meeting was called to ensure that the benefits of low international crude oil prices are passed to consumers. Umar noted: “Deregulation was meant to promote competition and efficiency, not excessive price increases. The reduction in the cost of replacement products must be passed to Nigerians in a timely and transparent manner.”
NNPC Petrol Prices Also Adjusted Downward
In a related development, petrol prices at filling stations operated by the Nigerian National Petroleum Company Limited (NNPC Limited) in Lagos have been adjusted downward again, bringing relief to motorists. Data obtained showed that NNPC's retail stations across the country are selling between N1,170 and N1,395 per litre, depending on their location. Lagos and Ogun recorded the lowest pump price at N1,170 per litre from N1,210, while Yobe recorded the highest at N1,395 per litre.
