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The Independent Petroleum Marketers Association of Nigeria (IPMAN) has raised concerns over a potential fuel scarcity despite the ongoing increase in the price of petroleum products. The association claims it is facing significant challenges in its dealings with the Nigeria National Petroleum Company Limited (NNPCL), which could exacerbate fuel supply issues across the country.
Speaking in Ilorin on Friday, IPMAN’s National Public Relations Officer, Okanlawon Olanrewaju, revealed that the current price NNPCL is imposing on marketers is unsustainable. “NNPC wants to sell at N1,010 to IPMAN. This price is even higher than what NNPC sells at their retail outlets after including transportation costs,” Olanrewaju explained, adding that such a pricing model is pushing marketers into a difficult situation.
IPMAN has been left frustrated by the NNPCL’s pricing strategy, with Olanrewaju noting that many members of the association have already paid substantial sums, around N15 billion, to the NNPC for fuel at the previous rate of N750 per litre. However, the product has not been delivered, and marketers are now being asked to top up their payments to match the new price. “They’ve asked us to top up the money paid to them before we pick the product. We cannot continue doing that,” Olanrewaju said.
The association has since issued a stay-off directive to its members, meaning they will halt further payments until a resolution is reached. This decision is likely to disrupt the distribution of fuel, as current supplies begin to run low. “By the time we didn’t pick product for some time and we start exhausting what we have, definitely, there’s going to be scarcity,” Olanrewaju warned.
Despite the potential for scarcity, Olanrewaju rejected calls for a return to the fuel subsidy regime, describing it as a step backward. He emphasized that while the current situation is challenging, the government’s move towards full deregulation of the sector is a positive development that will eventually foster competition and benefit the economy. “NNPC should not be the sole off-taker of Dangote fuel. If it’s opened up, the price would be crashing down,” he said.
