IPMAN Protests Rising Petrol Prices, Threatens To Stop Operations

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has issued a warning to halt operations across the country in response to escalating petrol prices imposed by the Nigerian National Petroleum Company Limited (NNPCL).

On Thursday, IPMAN disclosed that while Dangote Petroleum Refinery sells petrol to NNPCL at approximately N898 per litre, independent marketers are being charged N1,010 per litre in Lagos. This pricing disparity has sparked outrage, as IPMAN, which oversees over 70% of Nigeria’s filling stations, demands a refund from NNPC for previous petrol purchases.

The situation is likely to exacerbate petrol shortages and long queues nationwide. Meanwhile, it has been reported that members of the Major Energies Marketers Association of Nigeria (MEMAN) continue to access subsidised petrol from Dangote refinery based on prior agreements with NNPC.

IPMAN’s National Publicity Secretary, Chinedu Ukadike, emphasized that if the conflict with NNPC isn’t resolved soon, they may have to cease operations. The association’s president, Abubakar Maigandi, noted that the prices independent marketers are being asked to pay far exceed NNPC’s purchase price.

Maigandi indicated that NNPC has withheld N15 billion of IPMAN members’ funds for approximately three months. As a result, marketers are eager to procure petrol directly from Dangote Refinery instead of relying on NNPC, which has imposed burdensome pricing.

Recent increases in retail petrol prices have already stirred public discontent, marking the second hike within a month and pushing prices up by about 14.8%. The Nigeria Labour Congress and the Organized Private Sector are calling for an immediate reversal of these hikes.

With the latest adjustments, petrol prices have surged over 430% since the current administration took office. Despite attempts to reach NNPC for comment, no response was forthcoming as of the report’s publication.

In contrast, MEMAN claims to remain unaffected by NNPC’s pricing changes due to its established relationship and integrated supply systems, allowing them to manage stock more effectively.

As the fuel price hike takes a toll on the economy, experts warn of potential repercussions for small businesses and consumers alike, with rising costs likely leading to increased poverty levels and economic instability.