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By Adewale Sanyaolu
In the face of widespread petrol scarcity at retail outlets across the nation, coupled with growing public demands for a reduction in fuel prices, discontented marketers have urged the Nigerian National Petroleum Company (NNPC Ltd) to regulate the ex-depot price of petrol for tank farm owners. The marketers, speaking anonymously due to concerns about being labeled as rebels—a designation that could jeopardize their business interests—accused tank farm owners of exploiting the situation. They alleged that these owners were engaging in arbitrary price fixing, which not only burdens marketers but also unfairly impacts Nigerian consumers by driving up costs.
They called President Bola Tinubu to closely scrutinise the operations of the Nigerian National Petroleum Company (NNPC) Ltd, the Depots and Petroleum Products Marketers Association of Nigeria (DAPPMAN), and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). Confidential sources within the marketing sector have raised concerns about alleged collusion between these entities, claiming that such underhand dealings hinder the availability and smooth distribution of petroleum products to retail outlets. The marketers argue that these practices are detrimental to ensuring a consistent fuel supply across the country.
Investigations revealed that NNPC Ltd, the sole importer, sells petrol to the private depot owners operating under the aegis of DAPPMAN at an ex- depot price of N556.5 per liter.
Further checks however revealed that the tank farm owners sell to marketers at N700 to N740 per liter, leaving them with little or no marginal profit to sell at stations.
Recalling the previous experience in the sector when the NNPC Ltd 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 sanitise the distribution chain by prevailing on the NNPC Ltd and its regulatory arm, the NMDPRA to insist on an ex- depot price for the tank farm owners.
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They said: “What we used to have in the past was an arrangement where the NNPC Ltd gave allocations meant for Independent marketers to the private depot owners to sell to marketers at a benchmark price which is usually a reasonable price.
“Now, the independent marketers no longer have allocations, 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 searchlight on the activities of the tankfarm 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 ranks. How many stations do tank farm owners have.? But they are making huge profits to the detriment of Nigerians.”
The marketers who expressed the hope that giving the necessary incentives to the Dangote Refinery would go a long way in addressing the shortfall in product availability also called on the federal government to put the four refineries back on stream in order to put an end to product importation.
