The Independent Petroleum Marketers Association of Nigeria (IPMAN) has expressed its expectations on Dangote Refinery’s new petrol product pricing.
Chinedu Ukadike, IPMAN’s National Public Relations Officer, explained that the association’s remark regarding marketers perhaps avoiding Dangote Refinery products was not meant as a threat, but rather as a plea.
They anticipate Dangote Refinery to sell its petrol products at a low price because it is an indigenous refinery.
In an interview with Arise TV on Tuesday, Ukadike stated that the Nigeria National Petroleum Company Limited (NNPCL) keeps gasoline prices down by selling to marketers at a lower rate.
He explained that Dangote Refinery should not sell higher than NNPCL to marketers as an indigenous refinery.
“Well, it is not a threat. We are yearning, it is not a threat. We are yearning that whatever NNPC is giving to us, we also believe that since Dangote is an indigenous refinery, they should also align with NNPC and give us the same price.
“This sense of price disparity keeps long queues on the filling stations and it is not right in terms of business ethics. I know Dangote has the right to be able to fix its price or how it was able to produce, but the most important thing is that we are sourcing for where this product will be cheap and that is why we are also praying that the Port Harcourt refinery should come out on board so that we the independent marketer will have variable avenues where we can be able to pick our products,” Ukadike stated.
Speaking on price differences among filling stations owned by independent marketers, the IPMAN spokesman noted that marketers put prices based on where they sourced their products.
“NNPCL is selling at ₦895, that’s from Port Harcourt, the prices differ from the terminal, that is the depot you are picking the product. If you are picking from Lagos it’s far more cheaper, if you are picking from Warri, there’s also a different limit, those that are picking from Port Harcourt is ₦895; so it depends on where you are picking.
“I think we are comfortable with that price and we have also adjusted our prices to be able to accommodate our transportation from that same depot to our destinations and also look at our various managerial and haulage cost of funds to be able to set our own price.
“The beauty of this deregulation process is that all marketers can be able to set their price in line with their source of purchase and circumstances of bringing the products from wherever to their filling stations and make it an export price,” he added.
Ukadike explained that the marketers hope for a fully deregulated sector that would encourage competition. He noted that competition would give rise to demand and supply determining the price of petrol in the country.
“But our most important and pertinent desire is that we want this product as cheap as possible and we also want competition to set in. Once competition is set in, the forces of demand and supplied will determine price,” Ukadike said.
