The Independent Petroleum Marketers Association of Nigeria (IPMAN) has issued a warning about a potential fuel shortage in the country. This concern arises from the escalating costs of petroleum products.
The root of the issue appears to be a growing disagreement between IPMAN members and the management of the Nigeria National Petroleum Company Limited (NNPCL).
Alhaji Okanlawon Sulaiman Olanrewaju, the national Public Relations Officer for IPMAN, expressed that the current pricing imposed by NNPCL on marketers is excessively high. He cautioned that this could trigger another wave of fuel scarcity.
According to the IPMAN spokesperson, NNPCL intends to sell fuel to marketers at a price of N1,010 per litre. This rate is reportedly higher than the price NNPCL charges at its own retail outlets.
Olanrewaju described the challenges faced by IPMAN in the downstream oil sector as increasingly complex. He noted that the pricing from NNPCL is becoming unsustainable for marketers.
He further explained that NNPCL is the sole off-taker from the Dangote oil refinery, and the price they are offering to marketers is simply too steep.
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Olanrewaju emphasized that the N1,010 price point is particularly problematic, as it exceeds the retail prices NNPCL offers after factoring in transportation costs.
The spokesperson conveyed that such pricing puts marketers in a difficult position, as they will have to sell to the public at rates that may not be feasible.
He lamented that this situation could unfairly label them as “bad marketers,” which is not a reflection of their operations.
Describing the circumstances as unacceptable, Olanrewaju expressed confusion over NNPCL’s pricing strategy. He firmly stated that IPMAN would not accept these terms.
Currently, he revealed that IPMAN members have deposited approximately N15 billion into the NNPCL account over the past few months without receiving the corresponding fuel supply.
This amount covers two to three cargoes at the previous price of N750 per litre. Now, NNPCL is seeking to raise prices after several months of waiting.
Olanrewaju concluded by mentioning that they have been asked to top up the payments, further complicating the situation for marketers.
