Ex-depot Price of Fuel Increases Again, Marketers React, Send Message to Tinubu
- President Bola Tinubu has been asked by downstream operators to take a more active interest in the NNPC's operations
- This is in response to the nationwide fuel scarcity at retail locations and the irate Nigerians' calls for a price reduction
- The marketers pleaded with the federal government to order the four refineries to stop importing goods
Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.
Downstream operators have urged President Bola Tinubu to show more than a passing interest in the operations of the Nigerian National Petroleum Company Limited (NNPCL), the Depots and Petroleum Products Marketers Association of Nigeria (DAPPMA), and the regulatory body, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
Source: UGC
This is in light of the shortage of fuel at retail outlets across the nation and the agitated Nigerians' demand for a downward review of prices.
A few of the marketers claimed that NNPC, the owners of the tank farms, and the NMDPRA had made deals that would hinder the products' availability and easy delivery to retail locations.
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Tribune reported that with NNPCL as the only importer of the products, the marketers who yearned to remain anonymous said that the Independent Marketers, who have the biggest retail locations in the nation, are now at the mercy of the DAPPMA (the proprietors of the tank farms).
Investigation revealed that the NNPCL, the sole importer gives the Premium Motor Spirit (petrol) to the private depot owners operating under the aegis of DAPPMA at Ex- depot price of N556.5 per litre.
Further checks however revealed that the tank farm owners sell to marketers at N700 to N740.00, leaving them with little or no marginal profit to sell at stations.
Recalling the previous experience in the sector when the NNPCL used to release petroleum products allocation to tank farm owners for distribution to marketers with a benchmark on price, the industry operators called on the federal government to sanitize the distribution chain by prevailing on the NNPCL and its regulatory arm, the NMDPRA to insist on an Ex- depot price for the tank farm owners.
They said,
“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. 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 doing its job by beaming searchlight on the activities of the tank farm owners, by insisting on Ex- depot price they are using the marketers as scapegoats.
“There is a cabal in the sector creating problem 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.”
In addition to expressing optimism that providing the Dangote Refinery with the required incentives would significantly alleviate the shortage of products, the marketers urged the federal government to force the four refineries to cease product importation.
Nigerians who spoke to Legit.ng said that the increasing cost of transaportation is begining to affect them due to fuel cost hike."
Caleb Ifeoluwa said,
"Honestly, I think this is the height of it. Transport cost continues to upgrade due to rising fuel price while salaries remains"
Chris Uloma said,
"If at least petrol price can be stable then I think Nigeria will be much better and people will not have to protest."
Marketers speak on new fuel price
Legit.ng reported that fuel marketers in Nigeria have hailed the new directive by President Bola Tinubu to the Nigerian National Petroleum Company Limited (NNPC) to sell crude oil to Dangote Refinery and other refineries in naira instead of dollars.
The marketers are optimistic that the decision would lower fuel prices nationwide, benefiting consumers and the economy.
Legit.ng reported that the Federal Executive Council (FEC) adopted the crude sale in naira decision starting with Dangote Refinery.
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Source: Legit.ng
