IPMAN Blames NNPC for Lingering Petrol Scarcity

January 20, 2023
petrol scarcity

By Adedapo Adesanya

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has blamed the persisting scarcity and price hike of Premium Motor Spirit (PMS), otherwise known as petrol, on the Nigerian National Petroleum Corporation (NNPC) Limited, stating that the company has moved fuel supply from independent marketers to private tank farm owners.

The Vice Chairman of IPMAN in Rivers State, Mr Tochukwu Dominic, explained that marketers were supposed to get petroleum products directly from NNPC depots at a government-regulated price of N148 per litre and not from private tank farms.

Mr Dominic disclosed that buying products from private tank farm owners leaves them with no option but to fall to the dictates of private depots, which in turn affects the consumers, as the depot owners sell to marketers at a higher price.

He maintained that as much as marketers keep getting petroleum products, especially from private depots, fuel pump prices will still be on the increase.

“Scarcity of product is the root cause of the hike in fuel pump price. The NNPC has found comfort in dealing only with private tank farms. We (independent marketers) have no other option but to fall to the dictates of these private tank farms.

“NNPC is the sole importer of petroleum products, and there is no competition, which deregulation of PMS will usher in. We, independent marketers, are supposed to be getting the products directly from NNPC at N148 per litre, which will enable us to retail at the government-approved price of N175.

“But we independent marketers cannot source the products directly from NNPC, so we are left with no option but to source from anywhere so as to remain in business.

“The solution is for government to expedite action on fixing the refineries,” the oil marketer said.

Business Post had reported that filling stations monitored in Lagos were filled with stranded vehicular customers and people with empty containers, with the pump price at about N260 per litre. This has since jumped to as high as N300 per litre.

The situation in some places like Abuja is now up to a year, with the Lagos situation occurring for most of the last six months.

The petrol scarcity was attributed to the biggest flood crisis in the country in a decade, which affected more than 30 states in the country, but this has since receded, and despite claims that there was sufficiency by the NNPC, the product is not available.

Adedapo Adesanya

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

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