IPMAN: Why diesel still sells for N1,500 despite price reduction by Dangote refinery

Automotive gas oil (AGO), also known as diesel, sold for as high as N1,500 at fuel stations in Lagos and Abuja on Saturday.

TheCable observed that Mobil and TotalEnergies fuel stations in Festac Town, sold for N1,300 per litre and N1,500 per litre, respectively.

In Abuja, the price of the product was N1,450 per litre at Eterna, Banex, and N1,500 a litre at Emadeb, Kado.

The prices have remained the same despite Dangote refinery announcing a reduction in its costs of diesel to marketers from N1,200 to N1,000 on April 16.

Speaking on the issue, Abubakar Maigandi, president, Independent Petroleum Marketers Association of Nigeria (IPMAN), said marketers still have old stocks, hence the current price of the product.

“It started recently. And there’s been an old stock. Very soon, I know the price will be normalised,” Maigandi said.

He also said the drop in price favours oil marketers buying one million litres directly from Dangote refinery, adding that some IPMAN members have to buy from third parties.

“Definitely, you know Dangote refinery is selling for N1,000. But it is only for those who are buying one million litres and above. Those who are buying one truck from those one million litres will definitely add their profit,” he said.

He said this is why independent marketers are trying to “see how we can go closer to Dangote in terms of purchase so that the association will carry the volume and share it to the individual marketers who can not be able to buy one truck so that they will be able to buy it at a lower rate”.

Maigandi said the reduction of the price by Dangote refinery is a good step in the right direction.

On April 2, it was reported that Dangote Refinery fixed the minimum volume of diesel that can be purchased by oil marketers at one million litres.

Maigandi confirmed that the refinery started selling the product to marketers on March 2.