Nigerian National Petroleum Company Limited (NNPC) has reached an agreement to supply petrol to the Independent Petroleum Marketers Association of Nigeria (IPMAN) at a price of N995 per litre.

This deal comes after mediation by the Department of State Services (DSS), which helped resolve the standoff between the two parties.

As part of the agreement, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is set to pay IPMAN an outstanding N10 billion.

The negotiations also cover issues around sourcing fuel from the Dangote Refinery.

Hammed Fashola, the National Vice President of IPMAN, praised the DSS for its role in resolving the dispute, noting that the price difference in fuel— a major factor causing long queues at filling stations— is expected to narrow.

Currently, independent marketers are selling petrol for around N1,200 per litre, but with the new N995 per litre ex-depot price, retail prices may drop.

However, additional factors such as transportation costs could still influence final prices at the pump.

IPMAN is also negotiating with the Dangote Refinery to secure more direct purchasing options, while maintaining its relationship with NNPC to ensure favorable pricing for its members.

Previously, IPMAN raised concerns that NNPC was selling petrol bought from the Dangote Refinery at N898 per litre, but independent marketers were being charged up to N1,050 in certain areas.

Discussions are ongoing to resolve these price discrepancies, which have affected supply chains and put independent marketers at a disadvantage.

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Indigenous shipowners have raised concerns about being left out of Dangote Refinery’s plans to transport 75% of domestic petroleum products and petrochemicals via sea routes.

Despite the refinery’s operational progress, Nigerian vessels have been excluded from the lucrative product transportation, with foreign firms, notably Trafigura, taking the lead.

In September, Mr. Devakumar Edwin, Vice President of Oil & Gas at Dangote Industries Limited (DIL), disclosed the group’s strategy to use sea routes for the majority of its domestic product supply.

Key locations like Calabar, Port Harcourt, and Warri were identified as the main delivery points.

He also mentioned that DIL could still load 83% of its products via road, but highlighted the cost savings of sea transportation over road distribution.

Sola Adewumi, the National President of the Nigerian Shipowners Association (NISA) and CEO of Equatorial Energy Company, told the Nigerian Tribune that in the past six months, no Nigerian-owned ship has been involved in transporting products from the Dangote Refinery.

“As of now, no Nigerian vessel is involved in product lifting from the Dangote Refinery. What Dangote Refinery normally does is get in touch with international traders to sell their products,” Adewumi said.

He explained that the involvement of foreign firms like Trafigura is a result of the refinery’s sales arrangements with international traders, who have the freedom to select the vessels that will transport the products.

“Trafigura has been moving products on behalf of Dangote Refinery for months now because our Cabotage law is not working,” Adewumi noted.

Adewumi pointed out that the Ministry of Marine and Blue Economy is working to enforce regulations that would ensure Nigerian vessels are used for transporting local cargoes, in line with the country’s Cabotage law.

He emphasized that Nigeria is losing significant revenue due to the dominance of foreign vessels, adding, “The country is losing billions of revenues due to the current pattern of product transportation at the Dangote Refinery.”

As foreign companies continue to dominate the trade, Nigeria faces immense capital flight losses.

Adewumi lamented that, without the involvement of local vessels, these foreign firms repatriate their profits, leaving Nigeria’s maritime industry underutilized.

When reached for comment, Dangote Industries Limited’s spokesman, Mr. Tony Chiejina, promised to provide an official statement.

However, after a week of waiting, no response had been received.

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