Fuel Price News Today: Fuel can sell below the NNPCL rate
Fuel Price News Today: Fuel can sell below the NNPCL rate
Fuel Price News Today: According to independent oil marketers, if they obtain the product directly from Nigerian National Petroleum Company Limited (NNPCL), they might sell premium motor spirit fuel at a lower price than what is being charged at retail stations. This was said by Abubakar Maigandi, the National President of the Independent Petroleum Marketers Association of Nigeria, in a recent conversation with our correspondent.
According to the head of IPMAN, the main issue confronting independent oil marketers is NNPCL’s reluctance to provide the product straight from its storage. Maigandi claims that independent marketers purchase from third parties at a rate of N630 per liter, while the NNPCL sells to private depot owners for N557 per liter.
That, he claimed, was one of the reasons why IPMAN members—who he claimed made up 80% of the market—were selling a liter of gasoline for N650 and more. Our main issue right now is that we don’t obtain the product straight from the NNPCL. Normally, we purchase it from third parties rather than the NNPCL directly. We sell at a greater rate than the NNPCL rate because of this.
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“We can even offer it lower the NNPCL rate if we are obtaining it directly from the NNPCL, allowing the general public to benefit from our services. Recall that we have 80% of our retail locations nationwide. Fuel costs will go down if we get fuel from NNPCL.
“At the moment, we purchase gasoline in the private depots for N630 per liter. The margin will increase slightly with the addition of transportation costs, thus you will also need to add a profit margin. Charges apply when making payments through banks, he clarified.
Maigandi revealed that the Federal Government had been informed of the association’s issues.”We have complained about what we are going through to the authorities. The way the crowds are crying makes them surely do something. The price will be lowered if they provide the merchandise to us directly.
Because they purchased petrol at N556 per liter, NNPCL stations sell for about N580 or less. Depending on the region, we are also expected to obtain the product from the NNPCL at N556 or N557.
However, we pass via private depots.”NNPCL provides products to people without fueling stations. We now go to them to purchase it, and they are free to sell it to us at any price. That’s the difficulty we are facing.
With 80% of the stores, we make up the majority. The Major Energies Marketers Association of Nigeria and the NNPC Retail, Depot, and Petroleum Products Association of Nigeria make up the remaining 20%. They don’t have filling stations in the villages; those are located in the cities.
We are the ones who inhabit both towns and cities. In this industry, we are crucial,” Maigandi asserted. The NNPCL refuted IPMAN’s claim that it was hoarding more than N300 billion in member funds that had been deposited into its account to purchase PMS, as reported by The PUNCH.
As of right now, NNPCL is the only company bringing petroleum products into the nation.
