A fresh conflict appears to be brewing between the Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Nigerian National Petroleum Company Limited (NNPCL), centered around an alleged N15 billion debt owed to IPMAN for undelivered petroleum products.
The National President of IPMAN, Mr. Abubakar Garima, made this claim on Thursday during an interview on Channels TV’s Sunrise Daily. According to Garima, IPMAN members have not received a single truck of Premium Motor Spirit (PMS), or fuel, which they paid for nearly three months ago.
“Roughly, it is almost getting to N15 billion. Our money is already with the NNPCL. It has refused to give us the product we paid for and is asking us to complete the difference,” Garima explained. “Either they sell to us at the same rate they are getting the product from Dangote Refinery or refund us so we can buy directly from Dangote Refinery.”
Meanwhile, the National Public Relations Officer (PRO) of IPMAN, Mr. Okanlawon Olanrewaju, speaking in a telephone conversation with Daily Sun, disclosed that the association’s National Executive Council would convene next Wednesday in Abuja to deliberate on the issue. Olanrewaju stressed that the withheld funds, which have been unpaid for close to three months, were loans taken by IPMAN members from banks, accruing interest.
“For now, I cannot say what the next line of action would be on this matter,” Olanrewaju said. “But all I can tell you is that, by next week Wednesday, we will decide the next line of action.”
Responding to inquiries from Daily Sun via WhatsApp, Mr. Olufemi Soneye, Chief Corporate Communications Officer (CCCO) of NNPCL, denied the allegations, stating that the claims by IPMAN are false.
Garima further alleged that NNPCL has been selling fuel at a higher rate than it buys from the Dangote Refinery.
“NNPC Ltd collected products through Dangote at a lower rate which is not up to N900, but they are telling us now to buy this product from them at the price of N1,010 per litre in Lagos, N1,045 in Calabar, N1,050 in Port Harcourt, and N1,040 in Warri. Our money is already with the NNPC Ltd, and it has refused to give us the product we paid for,” he reiterated.
As the tension between IPMAN and NNPCL escalates, fuel queues resurfaced in several parts of Lagos, rapidly spreading across the metropolis following a sharp increase in petrol prices from N855 to N998 per litre. Many filling stations witnessed long queues as motorists scrambled to purchase fuel.
This price hike has also impacted commuters, with transportation fares rising significantly. For example, a trip from Abule-Egba that used to cost N700 now costs N1,000, as commercial bus drivers and Keke Marwa operators cite the rising fuel prices for the fare increase.
Commenting on the possible reasons behind the price surge, the President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Mr. Billy Gillis-Harry, suggested that the hike may be due to challenges in product landing by NNPCL.
“What I can tell you is, once there is difficulty in landing products by NNPCL and the size of shock absorbing that they [NNPCL] can do becomes overwhelming, they will certainly shed some of the loads. I think that’s what would have happened.”
Gillis-Harry also pointed out that market dynamics would play a significant role in determining petrol prices moving forward.
“The truth right now is that petrol prices are going to be determined by the forces of demand and supply,” he said during the show. “This doesn’t mean prices will always be high. However, our dollar exchange rate will significantly impact the cost of PMS because we are operating a dollarized business in naira.”
