Ogun to IPMAN: Task force set up to curb price manipulation — not intimidate oil marketers

The Ogun state government says it set up a task force in its petroleum industry to address fuel meter tampering and other sharp practices among operators.

On November 13, the Independent Petroleum Marketers Association of Nigeria (IPMAN) threatened to cease petroleum product supplies to the state over “ongoing harassment by an illegal task force” set up by the state government to combat fuel pump price manipulation.

In a statement on Thursday, Olugbenga Dairo, the state commissioner for transportation, said the government established a task force to regulate and ensure fair practices within the petroleum sector, amid soaring transportation costs and public outcry over pricing malpractices.

This, he said, is contrary to the allegations of harassment levelled against the task force by IPMAN.

Dairo said while carrying out its mandate, the task force discovered sharp practices at several filling stations visited, which implied financial losses for unsuspecting residents.

The commissioner said analysis of the filling stations visited showed that at Bugatee filling station, Idi-Aba, there was a shortage of 0.71 litre on every 10 litre purchased — amounting to about N700 in losses.

“MRS Filling Station, Afariogun Close, Ilaro, has a shortage of 0.74 litre on every 10 litre; AWO Filling Station, Aiyetoro Yewa, has a shortage of 0.62 litre on every 10 litre; and MRS, Ijebu Ode, has a 1 litre shortage on every 10 litre,” he said.

Dairo said at the MosBolarinde Concept filling station, a 0.4 litre shortage was uncovered on every 10 litres of fuel. The same amount of shortage was also discovered at Petrocam Fuel Station, Lusada.

He, therefore, called on members of IPMAN to cooperate with the state government in addressing the issue of fair pricing.

“Moreover, the assertion that the task force’s establishment contravenes specific provisions of the Petroleum Industry Act (PIA) could be seen as an interpretation that overlooks the necessity of regulatory measures in a market often fraught with irregularities,” the commissioner said.

“The government’s primary duty is to serve the public interest by ensuring fair pricing for fuel and combating unethical practices that can lead to inflationary pressures.

“Rather than threatening the stoppage of fuel supplies, a collaborative approach would be more beneficial for all parties involved.

“An open dialogue between IPMAN and the Ogun State government could lead to a mutually agreeable solution that addresses the concerns of marketers while prioritizing the welfare of the public.

“The issues at hand can surely be resolved through constructive engagement, ensuring that both the rights of the marketers and the needs of consumers are met.”

Dairo said the attempt by IPMAN members to withdraw services will impact their businesses and also the residents of Ogun who depend on adequate fuel supply for daily activities.

He urged IPMAN to review such drastic measures in light of the potential consequences and the critical importance of public welfare.