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IPMAN Mulls Cheaper Petrol With Local Currency Oil Trade

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The Independent Petroleum Marketers Association of Nigeria (IPMAN) has called for a nationwide reduction in the price of petrol, urging the government to reconsider the current fuel pricing structure.

Amid rising costs and economic pressures, IPMAN’s request reflects growing concern among Nigerians who are grappling with the financial strain of soaring fuel prices. The association’s plea comes as part of a broader push for more affordable energy solutions across the country.

As the cost of importing petrol continues to decline, the Independent Petroleum Marketers Association of Nigeria (IPMAN) has urged the Dangote refinery to cut its ex-depot price from the current N970 per litre.

With the estimated landing cost now pegged at N900.28 per litre, IPMAN argues that the refinery should adjust its pricing to reflect these lower import costs, ultimately providing much-needed relief to Nigerian consumers.

On July 29, President Bola Tinubu presented a proposal during a Federal Executive Council meeting to sell crude oil to local refineries in naira, a move that could reshape the dynamics of Nigeria’s petroleum sector. The proposal is part of a broader effort to enhance local production and shield the country’s economy from the volatility of international oil markets.

The Federal Executive Council (FEC) has approved President Bola Tinubu’s proposal to sell crude oil to Nigerian refineries in naira, marking a significant shift in the country’s oil trade practices.

As part of the initiative, 450,000 barrels of crude for local consumption will be made available to refineries in naira, with the Dangote refinery acting as the initial beneficiary of this landmark decision.

In addition to approving the sale of crude to local refineries in naira, the Federal Executive Council (FEC) has authorized an initial six-month trial period. This period will allow the Technical Sub-Committee on Domestic Sales of Crude Oil in Local Currency to assess the viability of the policy before making a final determination.

“From October 1, NNPC will commence the supply of about 385,000 barrels per day of crude oil to the Dangote refinery to be paid for in naira,” the committee had declared.

This implies that NNPC is to supply about 11.5m barrels of crude oil to the Dangote refinery monthly and an equivalent of over 23m barrels in two months.

Read also: Nigerian Customs Intercepts Smuggled Petrol Valued At ₦86.5m

However, sources who were informed about the local crude sale deal told our correspondents on Saturday that the deal was still ongoing despite little information about the volume of crude traded within the period

A source said, “There is no information to the contrary, which means the deal is still on. If it had been suspended or ended, you would have seen a statement from the parties involved or the committee in charge announcing that the deal was no longer working. It means if there is no statement, the deal is still ongoing.”

Efforts to gather details on the trade relationship between the Nigerian National Petroleum Company Limited (NNPCL) and Dangote Refinery have proven fruitless. Femi Soneye, the NNPCL spokesperson, did not respond to any of the queries made, leaving the nature of their dealings uncertain. This lack of response underscores the difficulty in obtaining clarity on transactions between two of Nigeria’s most influential energy players.

October saw the delivery of four crude oil cargoes to Dangote Refinery, as reported by industry sources. However, insiders revealed that the refinery is still expecting more shipments to meet its processing demands. The delay in receiving the remaining cargo raises questions about the refinery’s ability to maintain smooth operations.

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