Petrol scarcity: IPMAN asks NNPC to probe ‘profiteering’ at private depots

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has asked the Nigeria National Petroleum Corporation (NNPC) to probe activities of members of the Depots and Petroleum Products Marketers Association (DAPPMA) in order to check petrol scarcity.

Parts of the country have been experiencing scarcity of petrol also known as Premium Motor Spirit (PMS).

In a statement on Thursday, Debo Ahmed and Chinedu Ukadike, IPMAN president and spokesman, said the authorities are not doing anything about the alleged sharp practices at the private depots.

“The government is doing nothing about the private depots that are violating the system by selling higher. IPMAN members had suffered a lot in the hands of private depot owners. We appreciate the efforts of NNPC to make the product available but you cannot rob Peter to pay Paul,” they said.

“We have really suffered a lot of setbacks based on the cost of diesel. We aren’t saying there is non-availability of petroleum products, but what is available isn’t sufficient. The cost of diesel has also increased.

“These two factors have led to profiteering at tank farms, whereby marketers buy petroleum products at the rate of N169. 00, to N170.00 above government-controlled pump price.

“This non-availability has led to profiteering from the hands of Products Depots Operations along the coastal areas. We are also finding it difficult to move products from Lagos-Kano-Kaduna since we are heavily dependent on PDOs since they are located along the coastal areas.

“So, after looking at all these factors, it costs close to N700,000 to move petroleum products from Lagos to Kano since we are at the mercy of the PDOs.

“It is becoming increasingly difficult for marketers to sell petroleum products with this little margin. It is easy for marketers to move products from NNPC depots to sell at N165.00 but since we aren’t getting at N148.00, which is the government template for private depot tank farm owners to sell to marketers, but we are getting at N160.00, there is no way a marketer will use N5.00 to sell petroleum products. It isn’t viable, considering the cost of maintenance of the filling station and also the cost of funds.

“A litre of Automotive Gas Oil (diesel) is very huge and we are borrowing these funds from commercial banks. We want to use this opportunity to tell NNPC on behalf of marketers to ensure that we have sufficient products.

“These products are being sold to private depots at government approved rates, not above N148.00. If they can’t stick to the approved template, they should close down those tank farms selling above what the government has stipulated.”