Fuel Scarcity Looms – IPMAN Warns, Reveals Ordeal With NNPCL

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has issued a caution regarding a potential fuel scarcity across Nigeria.

In a statement to journalists in Ilorin on Friday, IPMAN’s National Public Relations Officer, Alhaji Okanlawon Sulaiman Olanrewaju, cited the rising costs of petroleum products contributing to the looming petrol scarcity.

He says the development stems from an escalating conflict between IPMAN members and the management of Nigeria National Petroleum Company Limited (NNPCL).

Olanrewaju regretted that the current pricing set by NNPC for marketers is excessively high.

The spokesperson indicated that NNPCL intends to sell fuel to marketers at ₦1,010, a rate surpassing its retail outlets’ prices.

He acknowledged that the directive from IPMAN’s leadership for marketers to refrain from operations could result in a shortage of fuel availability, potentially disrupting distribution once existing supplies are depleted.

Furthermore, he opposed the suggestion to reinstate the fuel subsidy, arguing that such a move would undermine the current established processes.

“The problem IPMAN is facing in the downstream oil sector is confounding. We realise that what NNPC is imposing on us is too much. NNPCL is the sole off-taker from Dangote oil refinery, and the amount the NNPCL wants to sell to us is too high.

“NNPC wants to sell at N1,010 to IPMAN. This price is even higher than what NNPCL sells at their retail outlets after including transportation costs. That’s a very difficult situation they are putting us in.

“We may not be able to survive in that kind of situation because we’ll have to sell to the same members of the public. Definitely, it’s like they want to tag us as bad marketers”.

Okanlawon, who described the situation as unacceptable to marketers, said “We don’t really know why they are doing that, but definitely, we’ll not accept it. It won’t work”.

He said, “Presently, our members have paid about ₦15 billion into the NNPCL account for months, and they’ve not given us the product. This is for about two to three cargoes at the old price of ₦750 per litre. And now they want to increase the price after about three or four months.

“They’ve asked us to top up the money paid to them before we pick the product. We cannot continue doing that. Our president has instructed that every member of the IPMAN should stay put until further notice as we’ll be having our NEC meeting on Wednesday next week. It means that marketers will not pay that money until our discussion.”

While lamenting the situation, the IPMAN spokesperson said that marketers take loans for business in banks, adding that the loans attract high interest rates.

“Economically, what they want us to do doesn’t sound good. We sourced the money from banks, and we’re paying money for it. We all know the way the interest rate is going up in banks.

“Achievements have been made. There may be some hitches along the line, but it’s better we take these steps. It may be tough now.
“The step the government is taking is good. By the time we’re in full deregulation, it’s going to bring about real competition in the downstream oil sector which is good for the economy.

“NNPC should not be the sole taker of Dangote fuel. If it opened up, the price would crash down. Now, we are not finding it easy because we can’t plan our business,” he said.