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IPMAN Challenges NNPC Over Petrol Price Surge, Threatens Nationwide Shutdown

Ademola Damilola by Ademola Damilola
October 11, 2024
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IPMAN Challenges NNPC Over Petrol Price Surge, Threatens Nationwide Shutdown
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The Independent Petroleum Marketers Association of Nigeria (IPMAN) is warning of a potential nationwide strike due to the high cost of petrol sold to its members by the Nigerian National Petroleum Company Limited (NNPC). According to IPMAN, while NNPC purchases petrol from the Dangote Refinery at ₦898 per liter, it sells the same product to independent marketers for ₦1,010 per liter in Lagos, with even higher prices in other regions.

IPMAN, which controls over 70% of Nigeria’s filling stations, has threatened to halt operations unless NNPC addresses the price discrepancy. The association is also demanding the return of outstanding payments made by its members for previous petrol supplies. This conflict could exacerbate the current fuel shortages and lead to even longer queues across the country.

The dispute has arisen as IPMAN accused NNPC of unfairly inflating prices, stating that funds owed to independent marketers have reached ₦15 billion. IPMAN’s National Publicity Secretary, Chinedu Ukadike, warned that without a swift resolution, the association may be forced to take drastic measures.

Meanwhile, members of the Major Oil Marketers Association of Nigeria (MEMAN), who continue to receive subsidized petrol from Dangote Refinery, are not facing similar challenges. MEMAN attributes this to its storage capacities and ongoing partnership with NNPC, allowing them to maintain lower prices for the time being.

This tension comes as fuel prices have surged dramatically in recent months, with the latest hike seeing prices in some parts of Nigeria rise to over ₦1,000 per liter, sparking widespread public frustration. Economists warn that the rising fuel costs could have severe ripple effects across the economy, from increased transportation expenses to heightened inflation, which will impact both businesses and consumers alike.

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