The Nation Newspaper

Tag: the Independent Petroleum Marketers Association of Nigeria (IPMAN)

  • ‘Why marketers hike petrol pump prices’ 

    ‘Why marketers hike petrol pump prices’ 

    The Independent Petroleum Marketers Association of Nigeria (IPMAN) on Sunday blamed their increase in the pump price of the Premium Motor Spirit (PMS) on the soaring cost of crude oil in the international market.

    Its National Public Relations Officer, Chief Chinedu Ukadike revealed to The Nation on phone, that crude oil which constitutes 80 per cent of the pricing template of the product was accountable for the hike.

    “Crude Oil prices have increased so the refineries and depots hike their cost so we also have to raise the pump prices,” he said.

    Brent crude sold $77.61 per barrel on Friday, rising from less than $60 per barrel a fortnight ago. 

    The soaring cost of the black gold is consequent upon the war between Iran and Israel, which has stalled the supply from the latter.

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    Speculation, which is also a major factor of the price of the crude oil, was also fueling its prices. 

    The Nation however observed from the Federal Capital Territory (FCT) petrol market yesterday there was an across board upward review of the pump prices.

    The state-owned Nigerian National Petroleum Company Limited (NNPCL) that vended the product at N895 per litre till Sunday morning, adjusted it to N945 per litre.

    MRS also hiked its to the same N945 per litre while Sabas sold its for N935/ litre.

    Meanwhile, Total Energy Plc vended the product for N929 per litre being the cheapest in the market yesterday.

    The prices crashed early this year as a result of the low cost of crude oil but later surged following the NNPCL suspension of Naira for crude arrangement with the Dangote Refinery.

    As the Federal Government reinstated the Naira for crude regime, the price dipped to where it soared last week.

    There were fears in the downstream industry yesterday that unless the government retain the Naira for crude sale to the 650,000 barrels per day plant, the prices might plument further. 

  • IPMAN: Why marketers worry over petrol price reduction

    IPMAN: Why marketers worry over petrol price reduction

    The Independent Petroleum Marketers Association of Nigeria (IPMAN) yesterday shed light on why reduction of the Premium Motor Spirit PMS (petrol) prices usually unsettles the marketers.

    Speaking with The Nation on phone, it National Public Relations Officer, Chief Chinedu Ukadike, said any clash in petrol price usually affect the calculated expectations of the marketers, who operate with credit facilities.

    According to him, any downward adjustment of prices usually affects both capital and profit.

    His words: “The challenge in the market is this fluctuation of prices. Marketers are always finding it difficult when the prices go down beyond their expectations because they borrowed Bank money. Since they borrowed bank money any minus different from what they have in their loans will definitely affect both their capital and profit.”

    Only this year, the major supplier of the product to the Nigerian market, Dangote Refinery, has crashed petrol prices twice.

    The Nation had last month reported that IPMAN National President Alhaji Abubakar Maigandi explaining the mechanism of unannounced price fall that has now permeated the market.

    He explained that the downward reviews came while some marketers were just lifting their products from the refinery at the old price.

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    With such adjustment, according to Maigandi, the marketers are usually at a fix about what to do with their consignments since hoarding it affects their capital and profit.

    Besides, he said for fear that the prices are likely to plument further, they grudgingly dispense their stock at losses.

    Bu Ukadike however noted that the citizenry are clamouring for more lower petrol prices, noting he would appreciate whatever would result in further price reduction.

    “Nigerians want more reduction. If there is anything they will do to ensure a good price which will navigate the market, I will appreciate it,” said Ukadike.

    The IPMAN spokesman described the 2023 removal of subsidy as the best development in the oil and gas industry.

    He said, “In the oil and gas industry we are not doing badly. I believe that this subsidy removal is the best thing for the oil and gas market.”

  • IPMAN set to shut down depots over bridging claims

    IPMAN set to shut down depots over bridging claims

    Depot chairmen under the Independent Petroleum Marketers Association of Nigeria (IPMAN) have threatened to shut down activities at the country’s depots over bridging claims, The Nation learnt.

    They expressed concerns over outstanding bridging claims since the scrapping of the Petroleum Equalisation Fund (PET).

    The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has taken over PET’s assets and liabilities, eliciting complaints in some quarters.

    Consequently, while the marketers are alleging that the authority has refused to settle the outstanding claims, the NMDPRA accused them of refusal to come up for verification of the debts.

    The accusation and counter-accusations have lingered for years.

    At a point, the Federal Government paid part of the claims last year to pacify the creditors.

    Also, the IPMAN Depot Chairmen’s Forum yesterday invited reporters to a media briefing it is holding today.

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    The subject matter of the invitation is the announcement of shutdown of all the Nigeria’s depots for refusal to settle the outstanding bridging claims.

    The invitation reads: “Hello and good afternoon. Please, a kind reminder of the press invite for tomorrow – Invitation to a press conference by IPMAN Depot Chairmen Forum…”

    The invitation indicated that the media briefing will hold at Alim Royal Hotel & Suites (Alim Royal Close, Plot 3, behind Victoria Garden Estate, off Ahmadu Bello Way, Mabushi, Abuja.

    The forum said it would use the media briefing to declare a shutdown of activities across all depots in Nigeria.

    It said the decision followed “NMDPRA’s refusal to offset long outstanding bridging claims”.

    But speaking with our correspondent on phone yesterday, IPMAN National President Abubakar Maigandi said he was oblivious of the media briefing and imminent withdrawal of services at the depots.

    The union leader said he would enquire from the depot chairmen and give The Nation an update on the development. But he did not respond to further phone calls from our correspondent last night.