Recent reports from The Nation indicate a drop in the prices of Premium Motor Spirit (PMS), commonly known as petrol, from N640 per litre to N630 per litre. This change follows the Nigerian National Petroleum Company Limited (NNPCL) supplying one per cent of the product directly to independent marketers.
The positive response from the market began when private depots learned of NNPCL's commitment to supply petrol directly to independent marketers. Alhaji Abubakar Maigandi, the National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), confirmed this development over the weekend.
Maigandi mentioned that the Executive Vice President, Downstream of NNPCL, Dapo Segun, assured marketers of direct product supply under the Product Finance Initiative Allocation (PFIA). Although independent marketers are entitled to 50 per cent of product allocation, receiving just one per cent directly from NNPCL has already impacted the market.
Maigandi stated, "The price has started reducing since NNPCL is giving independent marketers their direct allocation. NNPCL said they will give us direct product instead of taking it to private depot to sell it to us at a higher rate. It has started changing the price now even though they just gave us a small quantity. We are supposed to have 50 per cent of the distribution. Let’s say they have given us one per cent. Even that one per cent has started changing the situation of the market."
The depot price has also begun to decrease, dropping from N640 per litre to N630 per litre. NNPCL sells at N570 per litre, indicating that independent marketers will no longer need to rely solely on private depots for product supply, as NNPCL's direct supply ensures a more equitable and cost-effective distribution.
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