Business

February 6, 2023

PETROL SHORTAGE: Owners charge over N200 per litre ex-depot price

Petrol N617

•As tank farm owners, operators commit to N172 per litre

By Udeme Akpan & Obas Esiedesa

DEPOTS owners, under the umbrella of Depots and Petroleum Products Marketers Association of Nigeria, DAPPMAN, weekend, continued to sell petrol at over N200 per litre to the independent marketers nationwide.

The Federal Government had at a crucial meeting with downstream stakeholders last week, agreed to peg the ex-depot price at N172 per litre, with everyone promising to comply.

But checks by Vanguard, yesterday, showed that the private depots owners continued to sell to the independent marketers at over N200 per litre, as they argued they had not yet exhausted their old stocks.

Consequently, the independent marketers that incur additional cost of transporting the product to their retail outlets ended up selling it to motorists and other users at between N250 and N300 per litre, depending on location.

The Chief Executive Officer, the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, Engr. Farouk Ahmed, did not respond to Vanguard telephone calls and text messages yesterday.

But speaking in a telephone interview with Vanguard, yesterday, the National Operations Controller of the Independent Petroleum Marketers Association of Nigeria, IPMAN, Mr. Mike Osatuyi, said: “The government has already put the ex-depot price at N172 per litre. Everyone has agreed to comply. 

”Unfortunately, the depots owners are still selling at over N200 per litre. It is expected that they would comply once they finish selling their old stocks.

“Consequently, the independent marketers have not been able to reduce their pump prices. They have continued to sell at between N250 and over N300 per litre, depending on location because they also pay additional cost for transportation.”

Tank farm owners, operators commit to N172/litre

Meanwhile, the Ijegun-Egba Tankfarm Owners and Operators Association has pledged to sell to petrol marketers at Federal Government’s approved N172 per litre as part of measures to ease shortages across the country.

The group, whose tankfarms and facilities are located at Ijegun-Egba, Satelite Town, Lagos, are made up of AA Rano, JGold Nigeria, Chipet International, Emadeb Energy, First Royal Oil and MAO Petroleum amongst others.

Their decision came five days after the Federal Government moved against the marketers as petrol shortage failed to abate.

Chairman of Ijegun-Egba Tankfarm Owners and Operators Association, Adebowale Olujimi, in a statement yesterday, said with the group accounting for about 35 per cent of national petroleum product distribution, they played significant role in the industry.

He said: “Having considered the current challenges in petroleum product distribution, resulting in scarcity across the Nation, with attendant impact on the national economy, business and commercial activities, Ijegun Tankfarms have resolved as follows:

“That, with the expected estimated over 127 million litres of PMS for our facilities in the month of February, all our members will strive to ensure that the products are loaded and trucked without delay on receipt and discharge into our facilities. This will make the product available for Nigerians.

“That our Tank farms will continue to sell and load at the government regulated price of N172 ex-depot to all marketers; That all our members retail outlets across the nation will continue to sell petroleum products at the government approved price; That commencing from Monday 6 February 2023 we welcome all our esteemed marketers, in line with the Protocols set by the Federal Government.

”The protocols must be strictly complied with for transparency and accountability; that we will work 24 hours daily to achieve the objective(s) of making petroleum products, especially PMS available to Nigerians across the nation.”

Long queues remain in Lagos, environs

There were also long queues at a few filling stations owned by the major marketers and NNPC Limited, where the product was sold at about N185 per litre.

Normalcy returns in Abuja -IPMAN President

In another interview with Vanguard, President of IPMAN, Mr. Chinedu Okonkwo, said petrol shortage had improved in Abuja and environs.

According to Okonkwo, “IPMAN members have agreed to join or support the government in monitoring the entire process of moving the product from one place to another nationwide.”

We have adequate stocks — NNPCL

The Group Chief Executive Officer, CEO of NNPCL, Mr. Mele Kyari, who pointed out that the on-going petrol shortage across the country was not due to supply challenges, had said: “We do have a challenge of a very monumental proportion and the solution to this challenge is in this room. 

”There is a crisis around fuel distribution and this has resulted in a number of issues, which have taken a different dimension, which is clearly unanticipated.

“The reality is that we are not dealing with a supply problem. As we speak now, we have 831 million litres in marine and in the various depots we have up to 738 million litres of fuel in depots that are documented on all platforms.”