The Nigerian National Petroleum Company Limited (NNPC) has reached a pivotal agreement with the Independent Petroleum Marketers Association of Nigeria (IPMAN) to reduce the ex-depot price of petrol to N955 per litre. This decision comes after extensive negotiations aimed at addressing a pricing dispute regarding petrol sourced from the Dangote Refinery, which had been set at N1,010 per litre in Lagos.

The conflict emerged when IPMAN accused NNPC of imposing prices that exceeded the purchasing rate from the refinery, leading its members to demand refunds for deposits made to the NNPC. Abubakar Maigandi, the president of IPMAN, confirmed that the situation attracted the attention of the Department of State Services (DSS), which facilitated discussions that resulted in the price reduction. With the new pricing set at N995 per litre in Lagos, fuel loading is expected to resume at depots nationwide.

Negotiations between IPMAN and the Dangote Refinery for direct fuel loading are still in progress. Maigandi indicated that once these negotiations are finalized, petroleum marketers will be able to load fuel directly from the refinery. This move aligns with the Nigerian government’s directive for petroleum marketers to source products directly from the Dangote Refinery, signaling a shift towards deregulating the downstream oil sector.

Wale Edun, the Minister of Finance, emphasized that this initiative is part of the government’s strategy to foster competition within the market, which is crucial for enhancing efficiency and stabilizing fuel availability.

This agreement is viewed as a significant step toward alleviating fuel scarcity in the country and promoting a more deregulated petroleum industry. With IPMAN members set to resume fuel loading and distribution across Nigeria, the recent developments are expected to have a positive impact on the availability of petrol in the market.