Oil marketers in the nation, over the weekend, raised the alarm that the Depots and Petroleum Products Marketers Association of Nigeria sells products to them at outrageous prices.
This follows the scarcity of petrol at retail outlets across the country and the price review demand by angry Nigerians.
The downstream operators called on President Bola Tinubu to take more than passing interest in the activities of the Nigerian National Petroleum Company Limited (NNPC), DAPPMA and the regulatory agency, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), according to Arise News.
Some marketers, who pleaded anonymity alleged that the conspiracy of the aforementioned parties was detrimental to the product’s availability and their smooth delivery to petrol stations.
It was reported that the NNPC, the sole importer of petroleum products in Nigeria, gives Premium Motor Spirit (PMS) or petrol to the private depot owners operating under the aegis of DAPPMAN at ex-depot price of N556.5 per litre.
However, findings show that the tank farm owners sell to marketers for between N700 and N740.00, leaving them with little to no profit margin to sell at stations.
The industry operators urged the federal government to sanitize the distribution chain, recalling the past experience in the sector when the NNPC used to release petroleum products allocation to tank farm owners for distribution to marketers with a baseline on price.
They urged the government to put pressure on the NNPC and the NMDPRA, the industry watchdog, to demand that the owners of tank farms receive an ex-depot price.
“What we used to have in the past was an arrangement where the NNPC gave allocations meant for independent marketers to the private depot owners to sell to marketers with a benchmark, a reasonable price.
“Now, the independent marketers have no allocation, they are at the mercy of the tank farm owners. A situation where there is no ex-depot price won’t augur well for the industry. Private depot owners now sell at N800 to those of us who will sell at retail outlets to ordinary Nigerians.
“We are the ones Nigerians are accusing of hoarding products and selling at exorbitant prices. Instead of the midstream regulatory agency to do its job by beaming the searchlight on the activities of the tank farm owners, by insisting on ex-depot price they are using the marketers as scapegoats,” the group said.
The marketers assert that Tinubu is facing difficulties due to a cabal in the industry and emphasize the need for him to demonstrate the determination necessary to dismantle them.
“How many stations do tank farm owners have? But they are making huge profits to the detriment of Nigerians,” the oil marketers stressed.
Additionally, the marketers expressed optimism that providing the Dangote Refinery with the required incentives would significantly alleviate the shortage of product availability.
