Petroleum marketers are pointing fingers at the Nigerian National Petroleum Company Limited (NNPCL) and the Depots and Petroleum Products Marketers Association of Nigeria (DAPPMA) for the recent fuel scarcity in Nigeria.
They allege that questionable dealings between these entities and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) are responsible for the shortage of petrol and the difficulties in distributing it to retail outlets.
According to these marketers, who spoke anonymously, the current setup has placed them at a disadvantage. They claim that NNPCL, as the sole importer of petrol, provides fuel to private depot owners under DAPPMA at a price of N556.5 per litre.
However, these depot owners then sell the petrol to marketers at prices ranging from N700 to N740 per litre. This high ex-depot price leaves marketers with little to no profit margin when selling at petrol stations.
A marketer explained, “What we used to have in the past was an arrangement where the NNPCL 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.”
He added that the regulatory agency, NMDPRA, should be focusing on the activities of the tank farm owners rather than blaming the marketers. “Instead of the midstream regulatory agency doing its job by beaming its searchlight on the activities of the tank farm owners, by insisting on the ex-depot price they are using the marketers as scapegoats.”
The marketers have urged President Bola Tinubu to step in and address the issue, emphasizing that a cabal in the sector is creating significant problems. They stressed that while tank farm owners are making substantial profits, independent marketers and ordinary Nigerians are suffering.
“There is a cabal in the sector creating problems for President Bola Ahmed Tinubu. He must show the determined will to break their rank. How many stations do tank farm owners have? But they are making huge profits to the detriment of Nigerians,” said another marketer.
