The national secretariat of the Independent Petroleum Marketers Association of Nigeria (IPMAN) has called on the management of the Nigerian National Petroleum Company Limited, (NNPCL) to take more than passing interest in activities at the private depots owned by members of the Depots and Petroleum Products Marketers Association, (DAPPMA).
National president of IPMAN, Debo Ahmed and national publicity secretary, Chinedu Ukadike made the observation in a joint statement made available to newsmen.
The two national officers expressed concern over the sale of petroleum products to members of IPMAN above the NNPCL approved template of N148.00 which they noted was inimical to their survival.
While he agreed that its members would stick to the government approved price of N165.00 per litre at retail outlets across the country, Alhaji Ahmed called on the NNPCL to save his members from the excesses of (DAPPMA).
He said, “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 product available but you cannot rob Peter to pay Paul.
“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 cost 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 NNPCL 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 cost of fund. 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.
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“These products are being sold to private depots at government approved rates, not above N148.00. If they can’t stick to approved template, they should close down those tank farms selling above what government has stipulated.”
The IPMAN leadership also described factional president, Chinedu Okoronkwo, as a usurper, who has no authority to speak on behalf of the association.
“Chinedu Okoronkwo is not the president and has no right to talk on behalf of the association. The issue of IPMAN presidency has been settled by the supreme court on 14th Dec. 2018. Okoronkwo isn’t in contact with members of IPMAN and doesn’t represent their interest. “
Also speaking with newsmen, national chairman of Nigerian Association of Road Transport Owners, (NARTO) Alhaji Yusuff Lawal Othman, dismissed the claim of national chairman of Association of Distributors and Transporters of Petroleum,Alhaji Mohammed Danzaki.
Othman dismissed the group as non-existent as he maintained that only NARTO is known to players in the downstream sector of the oil industry.
“We don’t know ADITOP, the government only related with NARTO for haulage of petroleum products.
“We are the owners of vehicles and the petroleum tanker drivers are our drivers. If they say they are the owners of, who are their drivers and NARTO is the only recognised association that discussed with government on haulage, we discuss with PTD on drivers allowances.
“We are the only haulage agency recognised by downstream operators in this country.”
When contacted, member companies of Depot and Petroleum Products Marketers’ Association of Nigeria (DAPPMAN), told NATIONAL ECONOMY that adjustment in ex-depot price of petrol by the association is as a result of the on-going Russia-Ukraine War which has adversely affected the world, including Nigeria.
The association said this has had adverse impact on the international prices of fuel and food supply, thus resulting in a corresponding increase in local prices of goods and services including petrol.
Olufemi Adebayo Adewole, Executive Secretary, of DAPPMAN explained that the above situation has had its adverse effects on the operating cost of managing the various petroleum products depots in Nigeria.
“You would note that the petrol we supply, is sourced, solely from NNPC Limited’s marketing subsidiary, Petroleum Products Marketing Company Limited (PPMC) for our onward sale to the public at the regulated price of N165 per litre.
“This purchase from the PPMC is achieved through funds sourced with high bank interest charges, alongside increased costs of hiring vessels utilised in the delivery of fuel cargoes to our depots. This is coupled with the intense scarcity of bunker fuel for running these vessels with increase in the cost of diesel used in powering equipment and machineries in our depots and retail outlets,” he said.
According to him, overtime, depot owners and the government have struggled to sustain supply of petrol at the current pump price of N165 per litre despite the huge subsidy cost to government and abysmal or no profit margins to the depot owners.
A close source to the industry confided in our correspondent that the depot operators are not ready to review downwards the current rate until all costs are recovered.
