The Nigerian National Petroleum Company (NNPC) and the Independent Petroleum Marketers Association of Nigeria (IPMAN) have reached an agreement to address the ongoing fuel supply crisis in the country.
The deal allows IPMAN members to lift Premium Motor Spirit (PMS) from NNPC depots at a lower price and paves the way for greater market deregulation.
The agreement comes after IPMAN threatened to cease operations nationwide due to the high cost of loading petrol from NNPC facilities. The association had accused NNPC of selling petrol to independent marketers at a significantly higher price than it purchases from the Dangote Refinery.
IPMAN President Abubakar Maigandi argued that NNPC was profiting from the disparity in prices, while independent marketers were facing financial losses. He also criticized the company for delaying payments to IPMAN members.
In response to the crisis, the Director General of the Department of State Services, Adeola Ajayi, facilitated a meeting between NNPC and IPMAN. During the meeting, NNPC agreed to reduce the price of petrol for IPMAN members and allow them to load products worth N15 billion.
Additionally, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has committed to issuing import and off-taker licenses to IPMAN members. This will enable them to import fuel directly or purchase products from the Dangote Refinery, further promoting market deregulation.
The agreement marks a significant step towards resolving the fuel supply crisis and ensuring a more stable fuel market in Nigeria. However, it remains to be seen how effectively the new arrangements will be implemented and whether they will lead to a lasting solution to the challenges faced by the petroleum industry.
