The Nigerian National Petroleum Company Limited (NNPCL) has reached an agreement with oil marketers under the Independent Petroleum Marketers Association of Nigeria (IPMAN) to allow them to lift Premium Motor Spirit (petrol) from its depots at a reduced rate. In addition, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has promised to grant import and off-taker licenses to the marketers, enabling them to either directly import fuel or source products from the Dangote Refinery, aligning with the government’s full deregulation plan for the oil sector.

This development follows IPMAN’s threat to halt operations nationwide due to the high costs of loading petroleum products from NNPCL depots. On Thursday, IPMAN highlighted the price discrepancy, stating that while NNPCL purchases petrol from the Dangote Refinery at about N898 per litre, it sells the same product to independent marketers at N1,010 per litre in Lagos.

IPMAN, which controls over 70% of the country’s filling stations, opposed this pricing disparity and demanded a refund from NNPCL for previous payments made by its members. Abubakar Maigandi, the national president of IPMAN, expressed concerns during a live interview, noting that marketers’ funds had been held by NNPCL for around three months. He further outlined that the product price varied across different cities, with Lagos marketers paying N1,010 per litre, while those in Calabar, Port Harcourt, and Warri faced even higher prices.

Following a peace meeting facilitated by the Director General of the Department of State Services (DSS), Adeola Ajayi, a new agreement was reached. NNPCL has now allowed marketers to load products to cover the N15 billion owed to them. IPMAN’s National Publicity Secretary, Chinedu Ukadike, confirmed this development, adding that the meeting, which included NMDPRA and NNPCL officials, resulted in concessions that would enable marketers to access products more affordably.

Ukadike also noted that NMDPRA had agreed to issue import licenses to IPMAN, promoting full deregulation in the oil sector. However, NMDPRA’s spokesperson, George Ene-Ita, claimed to be unaware of the meeting and the license approvals. Additionally, NMPDRA is expected to pay N10 billion to the marketers as part of outstanding payments under the Petroleum Equalisation Fund.