NNPC Accused of Supplying Petrol Only to Marketers With 50 Petrol Stations as Scarcity Worsens
- Petroleum product marketers have disagreed with the NNPC over the availability of petrol in Nigeria
- The Independent Petroleum Marketers Association of Nigeria (IPMAN) said some depots have been dry for the past five days
- Findings reveal that NNPC allegedly adopted a policy of supplying depots with 50 petrol stations and above
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Petroleum marketers in Nigeria have come out to counter claim by the Nigerian National Petroleum Company's (NNPC) that there is about a 30-day supply of petrol available.
The marketers claimed there are dry depots scattered across the country.
They also revealed that NNPC was rationing supply to depots since it returned as Nigeria's sole importer of petrol.
Source: UGC
Depots have run out of petrol as NNPC awaits products
Chinedu Ukadike, the Public Relations Officer of the Independent Marketers Association of Nigeria (IPMAN), said most independent stations could not secure products from the depots.
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He stated that marketers across Nigeria are relying on NNPC as the sole petrol importer for supplies.
Vanguard quotes Ukadike as saying that most private depots have run out of stock as they shore up their supplies from NNPC.
He said the arrangement of supplying depots with products from NNPC encourages profiteering.
Ukadike revealed that the marketers have been finding it challenging to lift products from the NNPC in the past five days, saying that it accounts for the skeletal scarcity in the country.
NNPC allegedly gives supplies to marketers with 50 petrol stations
Ukadike also said the NNPC portal from where marketers load petrol has shut down and no longer issue authorisation to lift to marketers.
He said the situation means a gap in the supply chain, stating that NNPC CEO Mele Kyari assured him that the company was expecting products.
According to reports, NNPC now supplies products to depot owners with at least 50 fuel stations.
NNPC assures of adequate petrol supplies
However, NNPC Chief Executive Officer, Mele Kyari, revealed that the company has enough supplies in stock and no need for panic-buying.
NPPC said:
"NNPC Retail Ltd notes the appearance of fuel queues in some parts of Lagos and a few other locations around the country. This is due to reduced Depot loadout in Apapa, Lagos over a few days, and the root cause has since been addressed".
Findings show that most retail stations in the country may run out of fuel in the coming days as about 60% of the owners have about 50 petrol stations.
NNPC dumps crude oil swaps and pays cash for refined products
Legit.ng earlier reported that NNPC may be spending about N843 billion monthly on petrol imports following the halt in oil swaps by the company.
The company began buying petrol with cash tenders rather than oil swaps.
Daily petrol consumption falls as marketers move to begin import
The crude oil swap, known as Direct Sale or direct Purchase, has existed for almost a decade.
It allows NNPC to sell crude to refiners who supply the company with the equivalent of refined petroleum products.
Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) show that between June 1 and June 28, 2023, described as the post-deregulation period, total petrol consumption across Nigeria was 1.36 billion litres, while the average ex-depot price of the product was about N580 per litre.
Oil marketers move to end NNPC monopoly, set to resume petrol import as landing cost hits N720/litre
Legit.ng reported that there are indications that the NNPC would soon cease to be Nigeria's sole importer of petroleum products.
The development comes as oil marketers are said to resume importation of petrol as the Nigerian Government moves to end NNPC petrol import dominance.
The move follows a meeting between the Depots and Petroleum Marketers Association of Nigeria (DAPPMAN) and Major Marketers Association of Nigeria (MOMAN) with top officials of the Nigerian Midstream and Downstream Petroleum Products Regulatory Agency (NMDPRA) this week.
Source: Legit.ng
