Since the commencement of direct sales of Premium Motor Spirit, popularly known as petrol, to independent oil marketers by the Nigerian National Petroleum Corporation (NNPC), checks are beginning to suggest that the idea is fast fizzling out queues.
However, there are fears that the policy may not be sustained as only supplies from NNPC cannot saturate the entire country over time.
Currently, fuel still sells above recommended pump price of N145 in all parts of the South East, parts of South South and many parts of the North even as majority of filloing stations along Lagos Badagry Expressway still sell N170 especially between Abule-Osun and Okokomaiko.
Additional checks showed that members of the Independent Petroleum Marketers Association of Nigeria (IPMAN) had started receiving products directly from the NNPC for onward distribution to motorists and other fuel users.
Before the supply change, IPMAN members were getting PMS from major oil marketers and depot owners, a situation the independent oil dealers kicked against, as they argued that the association had the highest number of filling stations across the country.
Apart from that, major marketers had been arguing that landing costs of their products are over and above the recommended price of N133 to hover around N171.
According to the national Vice President of IPMAN, Abubakar Maigandi, recent fuel queues in the country became largely pronounced because most independent marketers had no product to dispense despite having widespread outlets and their inability to sell at N145 after landing the products at N171.
said, “The NNPC has imported products and our marketers have started loading. In the past, they (NNPC) gave only major marketers and the NNPC retail outlets. But now, they have started giving independent petroleum marketers our share.
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“So, definitely, I know there will be improvement by next week because our trucks have started loading since Friday. And between Friday and today (Monday), when the products they load get to the northern part of the country, there will be noticeable improvement.”
“Instead of going to the private depot owners and buying at a higher cost, independent marketers now get supply directly from the NNPC. The problem we had before was that the NNPC was allocating it products to DAPPMA (Depot and Petroleum Products Marketers Association) and MOMAN (Major Oil Marketers Association of Nigeria) and to their (NNPC) retail outlets.
“So, independent marketers get products from DAPPMA and MOMAN; and when we go there, they can give us at higher rates, which are the situation in some of their depots up till this moment. But the NNPC has started giving direct allocation to independent petroleum marketers at the same rate with what it gives to both MOMAN and DAPPMA.