The Independent Petroleum Marketers Association of Nigeria (IPMAN) has expressed its firm intention to buy Premium Motor Spirit (PMS) from the Dangote refinery, regardless of whether the Nigerian National Petroleum Corporation (NNPC) is involved. This bold declaration comes amid ongoing discussions around pricing and the availability of fuel in Nigeria. The statement, made by IPMAN’s National President, Abubakar Maigandi, highlights the association’s readiness to engage with Dangote, a significant player in the Nigerian oil sector.
IPMAN Ready to Patronize Dangote Regardless of NNPC Involvement
Speaking on Saturday, IPMAN President Abubakar Maigandi revealed the association’s willingness to purchase PMS from Dangote, one of Africa’s largest refineries, even if the NNPC abstains from doing so. This move signals a shift in the dynamics of Nigeria’s oil industry, as independent marketers prepare to take matters into their own hands to secure fuel supply for the nation. Maigandi emphasized that the independent marketers are committed to working with Dangote, provided the business terms are agreeable.
Maigandi stated, “Whatever the case, if Dangote starts selling his product, we are going to patronize him; if at all he wants to do business with us.” This comment reflects IPMAN’s readiness to diversify its supply sources, especially as the NNPC has remained non-committal regarding pricing control in the fuel market.
Independent Marketers Ready to Purchase at Any Price
In a bold move, Maigandi affirmed that IPMAN is prepared to buy PMS from Dangote at any price he sets, underscoring the association’s urgent need for reliable fuel supplies. This comes at a time when the NNPC has opted to step back from regulating fuel prices, creating uncertainty in the market. However, IPMAN’s willingness to purchase PMS at Dangote’s set price could bring stability and alleviate fuel scarcity issues across the country.
Maigandi emphasized, “We are ready to buy at any price because the NNPC is saying that they don’t want to involve themselves in fixing prices. So, at any price that he wants to sell, we are ready to buy and discharge and sell at a good price.” This resolve signals a strategic shift for the independent marketers, who aim to pass the benefits of fuel availability to consumers, despite fluctuating market conditions.
Potential Impact on Nigeria’s Fuel Market
The decision by IPMAN to patronize Dangote at any price, regardless of NNPC’s involvement, could have far-reaching implications for Nigeria’s fuel market. Firstly, it might increase competition in the industry, potentially leading to better pricing and availability of PMS for consumers. Additionally, with Dangote’s refinery set to become a major player in Africa’s oil landscape, independent marketers’ reliance on his supply could reduce the nation’s dependence on foreign fuel imports.
This development may also prompt the NNPC to reconsider its pricing strategies, as independent marketers are now more inclined to seek alternatives. Ultimately, the collaboration between IPMAN and Dangote could reshape Nigeria’s petroleum sector, ensuring better market efficiency and more consistent fuel supplies. .
NNPC Clarifies Position on Dangote Refinery Amid MURIC Accusations
In response to allegations by the Muslim Rights Concern (MURIC) that the NNPC was hindering the operations of Dangote Refinery, the NNPC issued a statement clarifying its position. The Chief Corporate Communications Officer, Olufemi Soneye, refuted claims suggesting that recent pump price changes would limit Dangote Refinery’s ability to offer competitive pricing.
Soneye stressed that the NNPC is not the only buyer of petroleum products in Nigeria and highlighted that the market is open to all players, including local refineries like Dangote Refinery Limited (DRL). He further emphasized that product pricing from any refinery is subject to global market forces, and local refineries have the opportunity to price their products competitively.
Open Market Competition Encouraged by NNPC
The NNPC reiterated its stance on fostering a competitive environment within the petroleum market, making it clear that they do not hold exclusive rights over products from the Dangote Refinery. Soneye pointed out that the “willing buyer, willing seller” approach remains the standard for transactions within the Nigerian oil industry. This open market strategy ensures that any marketer can buy directly from local refineries without being restricted by NNPC.
The NNPC’s assurance of transparency and competitive pricing comes as local refineries, like Dangote’s, prepare to enter the market. This development is expected to create more options for petroleum marketers, including IPMAN, who have already signaled their eagerness to partner with Dangote Refinery.
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