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Thursday, December 8, 2022

Fuel Scarcity: IPMAN accuses NNPC over pricing disparity; issues 7-day ultimatum

Mr Akinrinade said IPMAN was simply asking for fair competition, adding that the competition was no longer fair.

• December 7, 2022
A composite of Fuel queue in Nigeria, Independent Petroleum Marketers Association of Nigeria (IPMAN) and Nigerian National Petroleum Corporation
A composite of Fuel queue in Nigeria, Independent Petroleum Marketers Association of Nigeria (IPMAN) and Nigerian National Petroleum Corporation

Independent Petroleum Marketers Association of Nigeria (IPMAN) has accused the Nigerian National Petroleum Company Ltd. (NNPCL) of favouring major oil marketers, issuing a seven day ultimatum for the oil company to start selling to its members at the regulated depot price of N148.17 per litre.

The chairman of IPMAN Ejigbo Depot, Akin Akinrinade, made the remark in Lagos on Wednesday while addressing the media on the price disparity of petrol to IPMAN members by depot owners.

Mr Akinrinade wondered why private depots get petrol from NNPCL at the official rate of N148.17 per litre but sell at N220 per litre ex-depot price to IPMAN.

The lPMAN boss claimed his organisation had an agreement with NNPCL on fuel supply but has refused to adhere to the agreement.

He, however, asked NNPCL to work out a concrete arrangement for IPMAN to buy fuel at a regulated price of N148.17 per litre within seven days.

“We have noticed the price disparity at which NNPC is selling petrol to major marketers at a regulated price, and the private depots are selling to the independent marketers at N220 per litre.

“Major marketers are selling at the rate of N170 per litre in their stations, and retail outlets are selling at N169 at their stations.

“The private depots are selling ex-depot price at N220 per litre to us, which means that after paying N220 per litre, we still have to add other costs like transportation, logistics among other costs.”

According to the chairman, this has increased the price of petrol at IPMAN stations, adding that members now sell at N250 per litre and above to stay in business.

“We are no longer comfortable with this because Nigerians now see us as the black sheep.

“So, we want Nigerians to know that it is not of our making and that the authorities should address the issues around the price disparity.”

Mr Akinrinade said members found themselves in such a situation due to moribund NNPCL depots that were neglected.

“We loaded here last at the satellite depot in Lagos since December 2021, but throughout 2022, we have not load a drop of product here.

“Ordinarily, NNPC is supposed to make arrangements for us to load through the private depots, but they have abandoned that arrangement,” he said.

Mr Akinrinade said IPMAN was simply asking for fair competition, adding that the competition was no longer fair.

He said that lPMAN members were losing customers because they could no longer buy at the price of N250 and above.

(NAN)

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