Price hike by depot owners responsible for fuel scarcity, says IPMAN

The Independent Petroleum Marketers Association of Nigeria, IPMAN, has called on the Nigerian National Petroleum Company Limited, NNPC, and the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, to investigate arbitrary increases in fuel price by private depot owners.

The chairman, IPMAN, Western Zone, Alhaji Dele Tajudeen, made the call in an interview in Lagos, stating that the price hike by the private depot owners was responsible for the increase in the pump price of Premium Motor Spirit, PMS, or petrol in the country.

Tajudeen, who disclosed that there had been an increase in depot price of petrol from N148.17 to N178 per litre, said none of the NNPC depots had the product and that private depot owners took advantage of this to hike their price.

“The only option for our members is to opt for private depots to keep our business moving. “We are totally against the increase because it will affect our profit margins and the masses,” he said.

The IPMAN chairman said marketers should not be blamed for the increase in the pump price, adding that “selling at N170 per litre is not realistic”.

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The Tajudeen said: “Our members have no other option than to sell between N195 and N200 per litre within Lagos, Ogun and Oyo states, while we will sell between N200 and N210 in Kwara, Ondo, Osun and Ekiti states.

“Most of the tank farm owners have justified this increase because of different charges, among which is vessel charges paid in dollars.

“We are calling on the management of the Nigerian National Petroleum Company Ltd (NNPC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to investigate the arbitrary increase in fuel price by the private depot owners”.

However, a top official of the Depot and Petroleum Products Marketers Association of Nigeria, DAPPMA, who preferred to be anonymous, told the News Agency of Nigeria that the scarcity of fuel being experienced in parts of the country was as a result of a shortfall in product allocation from the NNPC.

The source said a large portion of product allocation was given to the Major Oil Marketers Association of Nigeria, MOMAN, because it is believed that they have large retail outlets.

“Ex-depot price has been between N162 and N163 per litre for marketers within Lagos and its environs, while between N164 and 165 for marketers outside Lagos like Calabar, Port Harcourt, Owerri and so on.

“Some foreign vessels that came into the country refused to discharge, due to financial challenges. The shortfall in product can best be explained by NNPC and its agencies,” he said.