The Independent Petroleum Marketers Association of Nigeria (IPMAN) has justified the reason for selling automotive gas oil (AGO), also known as diesel at an average of N1, 500 per liter.
This came about a week after Grassroots Parrot had reported how Dangote Refinery announced the reduction of price of the product from N1, 200 to N1, 000.
Diesel was sold for as high as N1, 500 at fuel stations in Lagos and Abuja on Saturday.
Fuel stations in Lagos sold between N1, 300 and N1, 500 per litre, while the price of the product was N1, 450 per litre in Abuja.
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.
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Reacting to the development, 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, while some IPMAN members have to buy from third parties.
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“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 cannot be able to buy one truck so that they will be able to buy it at a lower rate”.