IPMAN Threatens Nationwide Strike Over NNPC Fuel Pricing

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has issued a stern warning of a potential nationwide strike. The threat arises from what IPMAN describes as inflated fuel prices charged by the Nigerian National Petroleum Company Limited (NNPC) to independent marketers. The Association claims that the petrol cost from the Dangote Petroleum Refinery to NNPC stands at about N898 per litre, while NNPC sells the product to independent marketers at N1,010 per litre in Lagos.

Chinedu Ukadike, the National Publicity Secretary of IPMAN, stated, “The association may be forced to take action if the issue is not resolved immediately.” Ukadike stressed the discrepancy between the cost at which NNPC purchases the fuel and the selling price to independent marketers.

IPMAN controls over 70 percent of Nigeria’s filling stations and has protested against the pricing disparity, threatening to halt operations. This could exacerbate fuel scarcity and lead to longer queues at petrol stations across the nation.

In contrast, members of the Major Energies Marketers Association of Nigeria (MEMAN) continue to receive subsidized petrol from Dangote Refinery under a prior agreement with NNPC. Clement Isong, Executive Secretary of MEMAN, explained, “We have storage facilities, which gives us an advantage over other marketers. Thus, we do not face the same challenges with NNPC.”

The situation has been complicated by NNPC’s recent termination of its exclusive purchase agreement with Dangote Refinery. Despite this, major marketers continue to load products under a previous pricing structure, mitigating immediate effects of the pricing dispute.

Abubakar Maigandi, IPMAN’s national president, has termed the pricing scheme as “unjust,” highlighting that marketers’ funds with the NNPC amount to N15 billion. He noted, “We owe NNPC due to unresolved issues; they owe us for the fuel subsidy.”

Rising petrol prices have sparked public outrage, with the Nigeria Labour Congress and the Organised Private Sector calling for a rollback of the recent price increases. The price surge is linked to the full deregulatory measures that have pushed prices to more than 430 percent in 17 months.

Experts like Dr. Onuche Unekwu emphasized the adverse economic impacts. “The rising costs will lead to increased unemployment and remain a significant burden on households,” he commented. Likewise, Victor Agi from the Centre for Fiscal Transparency remarked on inflationary repercussions, highlighting transport costs as a driving factor for rising commodity prices.

The NNPC and Dangote refinery are yet to address IPMAN’s grievances directly. Without these engagements, IPMAN plans to continue negotiating directly with Dangote for fuel procurement.