Amid the widespread petrol scarcity and the public’s demand for lower prices, downstream operators are calling on President Bola Ahmed Tinubu to closely examine the activities of the Nigerian National Petroleum Company Limited (NNPCL), the Depots and Petroleum Products Marketers Association of Nigeria (DAPPMA), and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
Several marketers, speaking anonymously, alleged corrupt practices involving the NNPC, tank farm owners, and the NMDPRA, which they claim are hindering the availability and distribution of fuel.
They noted that NNPCL, as the sole importer of petrol, has left independent marketers, who own the majority of retail outlets, dependent on DAPPMA, which represents the tank farm owners.
Findings showed that NNPCL provides Premium Motor Spirit (petrol) to private depot owners under DAPPMA at an ex-depot price of N556.5 per litre. However, the tank farm owners reportedly sell to marketers at prices ranging from N700 to N740 per litre, leaving minimal profit margins for retail sales.
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Industry operators urged the federal government to sanitise the distribution chain by ensuring NNPCL and NMDPRA enforce a standardised ex-depot price for tank farm owners.
They pointed out that in the past, NNPCL allocated petrol to independent marketers at a reasonable benchmark price via private depot owners.
Now, independent marketers receive no allocations and are subject to the prices set by tank farm owners, they said.
“What we used to have in the past was an arrangement where NNPCL gave allocations meant for independent marketers to private depot owners to sell to marketers at a reasonable benchmark price,” one marketer explained.
“Now, independent marketers have no allocation and are at the mercy of the tank farm owners. Without an ex-depot price, the industry suffers. Private depot owners now sell at N800 to us, who then sell at retail outlets to ordinary Nigerians. We are being accused of hoarding products and selling at exorbitant prices,” he added.
Another marketer also criticised the NMDPRA for failing to regulate the tank farm owners, instead targeting marketers as scapegoats.
“There is a cabal in the sector creating problems for President Bola Ahmed Tinubu. He must show the determined will to break their ranks. How many stations do tank farm owners have? Yet, they are making huge profits to the detriment of Nigerians,” he said.
The marketers, who expressed hope that providing necessary incentives to the Dangote Refinery would significantly address the shortfall in product availability, also urged the federal government to ensure the functionality of the four existing refineries to end reliance on product importation.
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