Marketers to slash fuel cost if NNPC meets new condition

• The Petroleum Marketers are requesting that the NNPC allocate 50% of its petrol sales to them
• This is amid the fuel shortage across the country, which has caused petrol prices to increase
• He claims that IPMAN members purchase fuel from third parties at exorbitant prices and sell at a higher price

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

In an attempt to lower costs and wait times at filling stations, the Nigerian National Petroleum Company (NNPC) Limited is being asked to allocate 50% of its gasoline to the Independent Petroleum Marketers Association of Nigeria (IPMAN).s

Marketers said they buy petrol at inflated costs from third parties, which allows them to sell it for more money. Photo Credit: Bloomberg
Source: UGC

In an interview with NAN on Friday, IPMAN national vice-president Hammed Fasola stated that insufficient allocation caused the fuel shortage.

According to Fasola, if IPMAN members obtain their petrol directly from NNPC, Nigerians can afford the price per litre and filling station lines will be shorter.

According to him, IPMAN members buy gasoline at inflated costs from third parties, which allows them to sell it for more money.

According to the vice president, the association has requested that the NNPC raise the gasoline allotment to 50%, as it was previously.

“It is not that we don’t get at all; we are getting a little, and when you compare our number in this sector, our members own 80% of the filling stations. In the past, it was not like this,” Fasola said.“We had a share of 50%, but recently, things have changed, and we are trying to convince the authorities, especially the NNPC, that they have to correct that abnormality.“We are still trying to address the issue. This is why the independent marketers are selling at a higher price, which is not good for our image.”

Marketers buy from private depot

According to Fasola, its members are compelled to purchase gasoline from owners of private depots, which they find intolerable.

He said,

“We go there sometimes, and they will sell at N720 per litre, and in their own stations, they are selling N620 or N650 per litre; you can see the disparity and the public will not understand.”“This is why we are trying to educate the people that we are not shrew business people who want to milk Nigerians.“Some filling stations have closed for business because they can’t cope – this is the situation we found ourselves in; until the government corrects it and everybody is on the same level.”

To help the public and merchants alike, he pleaded with NNPC to address the allocation problems and enable IPMAN members to access petroleum directly and equitably.

Fake news

Regarding the alleged rise in petrol prices, Fasola called it "fake news," adding that the organisation has not been notified in writing of any such change.

Recall that petrol lines reopened at filling stations in Lagos and the Federal Capital Territory (FCT) on July 8.

Speaking about the circumstance, Clement Isong, executive secretary of the Major Energies Marketers Association of Nigeria (MEMAN), stated that one of the contributing factors to the scenario was the delay in loading petroleum goods at depots.

According to NNPC, the primary reason for the fuel lines in the Federal Capital Territory is the disruption of the ship-to-ship (STS) fuel transfer between mother vessels and daughter vessels.

Filling stations sell fuel

Legit.ng reported that Nigerians are expressing outrage as the price of petrol soared in Abuja and other parts of the country.

Nigerians have voiced their frustrations, describing the price hike as unbearable as it has escalated their cost of living.

Punch reports that filling stations have increased the pump price of petrol to N900/litre, particularly in Abuja, Nasarawa and Niger.

Source: Legit.ng