IPMAN: PMS to sell ₦935 per litre as price of petrol set to reduce
Amidst current hike in the pump price of petrol which has left the price of good and services barely affordable for Nigerians, the Independent Petroleum Marketers Association of Nigeria (IPMAN) has disclosed that the price of Premium Motor Spirit (PMS) is set to reduce from today, Monday, December 23, 2024.
This disclosure was made following recent arrangement between IPMAN and the Dangote Refinery.
In a statement released via the body’s National President Maigandi Garima, it is disclosed that petrol will start selling for ₦935/Litre from today.
He stated that the reduction in price of petrol and similar arrangement would enable marketers to sell at N935 at the outlets, incurring a cost of N36 on logistics.
“Dangote refinery has brought another new arrangement of loading and pricing by which marketers would pay a fixed ex-depot price of N899.50k.
“The refinery is running a programme whereby it wants the fuel consumption across the country to be at the same rate.
“We are expecting the new arrangement to kick-start on Monday.
“Previously, the loading price was N970 per litre, but from Monday, petrol prices will drop to N935,” Garima stated.
PMS To Sell ₦935 Per Litre – IPMAN
Garima also stated that over 30,000 of IPMAN members are on ground at the Dangote Petroleum Refinery and Port Harcourt Refinery Company to commence petrol loading after reduction in ex-depot price of petrol to N899 per litre.
The development came following recently reported reduction in the price of petrol on Sunday.
It was reported on Sunday that some filling stations, including MRS, BOVAS and NNPC, in Lagos were selling the product at between N950 and N980 per litre.
However, following visits to other various filling stations in the state, we discovered that the cost of the petroleum product was still above N1,000/litre.
But on Sunday, IPMAN pledged further reduction in the price of the product as it assured the public that the reduction in price will also take effect in other fillings stations in the state on Monday (today).
On the other hand, owners of retail outlets under the auspices of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) have moved to register with MRS to lift petrol from Dangote Refinery at N935 per litre.
These revelations were made by IPMAN Publicity Officer Chinedu Ukadike, and the PETROAN President Billy Gillis-Harris during their separate interviews on Sunday.
This new development erupted following intense price competitiveness in the nation’s downstream sector which is said to have prompted a price war between the NNPCL and the Dangote Refinery due to a reduction in the ex-depot price to N899 per litre.
Rewinding, it can be recalled that two days ago (on Saturday), the NNPCL, in a shocking display, reduced the price of petrol by 12 per cent, which came as a relief and delight to Nigerians during the Yuletide.
NNPCL’s decision came a few days after Dangote Refinery slashed the price of its petrol to N899 and this was confirmed by PETROAN in a statement on Saturday.
Prior to this time, petrol prices experienced incessant increase, worrying the consumers if there was a probability of affordability of the product during festivities.
The recent reduction to N935 attests projections by marketers which was reported last week.
Ukadike also said that Nigerians are benefitting from competition between NNPCL and Dangote Refinery for market share, which he stated that it will reveal the actual cost of petrol production and the amount spent on logistics.
PMS To Sell ₦935 Per Litre – IPMAN
In his statement, he said: “NNPCL has changed their price at their portal. It means that everyone who has access to that portal can be able to request and pay for products.
Once you pay, you will called to the depot to pick up your products. Yes, they have changed the price on their portal.”
He furthered: “For us, the reduced price remains a welcome development as that is the beauty of a deregulated sector.
You know, when there are multiple sources of petroleum products, there will be production and pricing competition.
“That interplay of pricing has come to the center stage, and it is now to the advantage of the commuters who wish that this petroleum product will be sold at a lesser price.
“The fight to control market share between NNPCL and Dangote is healthy for Nigerians because, at the end of the day, we would know the actual cost of PMS production and the amount spent on logistics.
“It will also help marketers in our retailing capacity and pick up more volumes. The cost today is very high, and the reduced price will help us pick more volumes.
“Commuters are no longer taking products the way they used to but with the price decrease, there will be heavy consumption.”
PMS To Sell ₦935 Per Litre – IPMAN
He stressed that oil marketers will not work with one supplier but look to patronise both refineries, considering proximity.
Ukadike said: “We would be picking our products from both refineries but the most important thing is the nearness to retail outlets.
“But Dangote arrangement is via MRS, and NNPCL is helping to load from other depots.”
As regard the reduction in price of petrol, the IPMAN officer enumerated that marketers are looking to set prices; but instead, the factor of supply and demand will dictate the price, citing that this is why varied prices of PMS across the country.
He further assured Nigerians that all fuel outlets owned by IPMAN members will be open throughout the festive period to avoid any avoidable scarcity.
On the other hand, the PETROAN president confirmed that its members are already looking to register with MRS filling station to on-load its fuel tankers as Dangote and Port Harcourt Refineries are yet to disburse PMS to its members.
He also revealed that a product off-take will commence today (Monday) and will also look to enforce price reduction at retail centre nationwide.
“We have not started picking up products from the Port Harcourt refinery, even from the Dangote refinery, he said.
PMS To Sell ₦935 Per Litre – IPMAN
“But some of our members, out of their magnanimity, are trying to sell at a cheaper price even in Abuja.
“Dangote price mechanism brings value for PETROAN members, and we are partnering with MRS filling station to sell at N935 per litre nationwide.
“Our members partnering with MRS will do that. The station has opened its valves to accommodate as many members that can work with them.
“So from this morning (Sunday), we were already up and running on their platform to register our members.
“It is a wonderful thing that is coming up and we hope NNPCL will also follow suit.
“The economies of scale favor Dangote, but NNPCL is doing its best to flood the country with available products.
“I think a lot of good things will happen in the sector even till the new year.
“So let’s see how off-take of products will pan out across the country from tomorrow.
“If the demography of off-take spreads everywhere and we can compute what the logistics costs would be, it will be easy to predict what will happen.
“But, certainly, when refiners reduce price, and we can buy directly, we will ensure Nigerians benefit, and that is what PETROAN is doing.”
According to his statement on imminent reduction in price, the PEROAN boss said, “We have mentioned severally that pricing was still going to drop, and that is the trajectory and reality of how this whole thing is going to play out.
“So gradually, the price will go down and then come down and vary.
“It’s not going to be static, and that is why I think it’s not right to do an armchair projection.”
Meanwhile, the Dangote Refinery says its plant is now operating at 85 % capacity, but by January, it will deliver European-standard products.
Head of Dangote Refinery Edwin Devakumar said in an interviews with CNBC Africa: “We have gone up to 550,000 bpd, that is 85 per cent capacity in crude distillation.”
The 650,000-bpd Dangote oil refinery is owned by Dangote Group, headed by Nigerian Billionaire and Africa’s Richest Man, Alhaji Aliko Dangote.
PMS To Sell ₦935 Per Litre – IPMAN
