Petrol Scarcity: NNPCL Bars Independent Marketers Amid Surging Prices

By Ayodele Ifasakin 

Nigerian National Petroleum Corporation has reportedly suspended the sale of Premium Motor Spirit – popularly called petrol – to independent marketers after it hiked the product’s price on Tuesday.

Petrol Scarcity: NNPCL Bars Independent Marketers Amid Surging Prices

This is even as three vessels berthed at the Apapa, Lagos jetty on Wednesday to discharge imported petrol.

The price hike sparked a protest in Delta State as commercial tricycle operators, also known as ‘keke’ riders, took to the streets of Warri and Effurun metropolis to resist the price hike.

Checks by our correspondents revealed that commuters across the country were either stranded or trekked long distances on Wednesday as fuel queues worsened amid scarcity of the product.

Few commercial motorists came out for business, with most of them lamenting the agonising hike in fuel, barely a month after the hardship protest rocked the nation.

The National Vice President of the Independent Petroleum Marketers Association of Nigeria, Hammed Fashola, told The PUNCH that the NNPC stopped selling fuel to independent marketers on Tuesday when it raised the price of a litre of PMS to N855 and above across its retail outlets nationwide.

Independent marketers sold the product for as much as N1,200 and N1,300/litre in some states following the upward review of prices by the NNPC.

Fashola wondered why the national oil firm would suspend the sale of petrol to the marketers take without any official communication, even when the marketers had paid for the product over two months ago.

Asked if it was true that many of the independent marketers did not go to the depot to lift fuel, Fashola responded, “What are they going there to do? They have stopped our loading. All the tickets we have in the kitties of NNPC, they are not treating them; everything has been suspended.”

When our correspondent inquired to know if the suspension was done despite having paid for the product ordered, he replied, “Yes, our tickets were suspended for loading. They have not been attending to us since yesterday (Tuesday), and there is no official communication yet.

“It is a very bad situation for somebody who has paid for the product, maybe like two to three months ago, and all of a sudden, you stopped loading, maybe because you want to change the price. And it’s not the fault of that customer, because it is supposed to be cash-and-carry. So, I think the NNPC should look at that situation critically.”

It was learnt that NNPC usually prioritised major marketers while IPMAN members resorted to private depot owners, who sold at higher prices, leading to a wide gap between the prices offered by both categories of marketers.

“We’re usually forced to go to private depots, it’s not out of our own volition. We were forced to go there because of inadequate supply,” Fashola stressed.

Speaking on the Dangote refinery fuel, which is expected to hit the pumps soon, Fashola said marketers would monitor the situation till Friday.

“We are watching the development. We are monitoring it; we will wait, maybe by Friday we will know where we are going by the time the Federal Government makes a pronouncement as regards the price. There is no official communication yet.”

Petrol Scarcity looms as truck drivers start strike on Monday

AgegePulse Magazine 

This was contained in a statement NARTO’s National President, Alhaji Yusuf Lawal Othman released in Abuja on Thursday.

Othman said in consequence of the ugly situation, the association intimated the Chief of Staff to President Bola Ahmed Tinubu; Minister of Petroleum Resources; Director General, Department of State Services (DSS); Nigerian Midstream and Downstream Regulatory Authority (NMDPRA) Chief Executive Officer; Nigerian National Petroleum Company Limited (NNPCL) Group Chief Executive Officer; and the Marketers about their plight through letters but the correspondence brought no impact.

He added that the lingering condition has made them to resort to park their trucks saying, “We will have to suspend operations from Monday. We cannot continue to operate at a loss. Most people have parked. A lot more are going to park.”

Othman wrote further:“Everybody is aware that all our consumables in terms of operation are not produced in the country.

“So, by virtue of the rate of dollars, every consumable has increased. But the freight they are paying us has been the same even during Buhari’s time.

“So how is that feasible? During Buhari’s time, the dollar was N650. Today, the dollar is now N1,615. The average freight from Lagos to Abuja is N32.

“What I mean by local, you load Lagos, you discharge in Lagos. And bridging, you load from Lagos, you come to Abuja. Lagos to Lagos, we are paid N120,000.

“AGO alone to distribute fuel within Lagos is N140,000 because it is N1,400 per litre. So, they give you N120,000 and you spend N140,000. So, how do you want to operate?

“Talk less about the cost of vehicles, cost of loading, driver’s allowance. That is for local. For bridging, Lagos to Abuja, they gave us N32.

“If you have a truck of 40,000 litres, you are talking of N1,280,000-N1,216,000. Less 5% of the amount of N1,280,000 Withholding Tax N64,000. Less 55,000 loading expenses and 15,000 driver allowance. Total expenses N134,000 while balance is N1,146,000. AGO is N1400 for 900 litres, totalling N1, 260,000. There is a total loss of N114,000.

OrijoReporter