IPMAN: NNPCL putting us in difficult situation, another fuel scarcity likely
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has warned of a looming fuel scarcity in the country following increasing cost of petroleum product. The situation has been attributed to the brewing disagreement IPMAN members and management of the Nigeria National Petroleum Company Limited (NNPCL). Speaking with journalists in Ilorin on Friday, IPMAN national Public […]
FILE PHOTO: Fuel queue
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has warned of a looming fuel scarcity in the country following increasing cost of petroleum product.
The situation has been attributed to the brewing disagreement IPMAN members and management of the Nigeria National Petroleum Company Limited (NNPCL).
Speaking with journalists in Ilorin on Friday, IPMAN national Public Relations Officer, Alhaji Okanlawon Sulaiman Olanrewaju, said the current price which the NNPC is imposing on marketers is too high and may cause another round of fuel scarcity.
The IPMAN spokesperson, who said that NNPCL wants to sell at N1,010 to marketers, added that the price is even higher than what it sells at its outlets.
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“The problem IPMAN is facing in the downstream oil sector is confounding. We realise that what NNPC is imposing on us is too much. NNPCL is the sole off taker from Dangote oil refinery and the amount the NNPCL wants to sell to us is too high.
“NNPC wants to sell at N1,010 to IPMAN. This price is even higher than what NNPCL sells at their retail outlets after including transportation cost. That’s a very difficult situation they are putting us in.
“We may not be able to survive in that kind of situation because we’ll have to sell to the same members of the public. Definitely, it’s like they want to tag us as bad marketers”.
Okanlawon, who described the situation as unacceptable to marketers, said that, “We don’t really know why they are doing that but definitely, we’ll not accept it. It won’t work”.
He said “Presently, our members have paid about N15 billion into the NNPCL account for months and they’ve not given us the product. This is for about two to three cargoes at the old price of N750 per litre. And now they want to increase the price after about three or four months.
“They’ve asked us to top up the money paid to them before we pick the product. We cannot continue doing that. Our president has instructed that every member of the IPMAN should stay put until further notice as we’ll be having our NEC meeting on Wednesday next week. It means that marketers will not pay that money until our discussion”, he said.
While lamenting the situation, the IPMAN spokesperson said that marketers take loans for business in banks, adding that the loans attract high interest rates.
“Economically, what they want us to do doesn’t sound good. Because we sourced the money from banks and we’re paying money on it. We all know the way the interest rate is going up in banks” he said.
The IPMAN official, who agreed that the stay off directive by leadership of the association to marketers could lead to non-availability of fuel in circulation, said it may disrupt distribution of fuel after they exhaust present stock.
He kicked against the call for return to the fuel subsidy regime adding that saying that such decision will distort all the processes already in place.
“Achievements have been made. There may be some hitches along the line, but it’s better we take these steps. It may be tough now.
“The step the government is taking is good. By the time we’re in full deregulation, it’s going to bring about real competition in the downstream oil sector which is good for the economy.
“NNPC should not be the sole taker of Dangote fuel. If it opened up, the price would crash down. Now, we are not finding it easy because we can’t plan our business.”