Amidst the ongoing petrol scarcity and public outcry for a reduction in fuel prices, downstream petroleum operators have called on President Bola Ahmed Tinubu to take a more active role in addressing issues within the Nigerian National Petroleum Company Limited (NNPCL), the Depots and Petroleum Products Marketers Association of Nigeria (DAPPMA), and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
Several marketers, who requested anonymity, alleged that there are questionable practices between NNPCL, tank farm owners, and the regulatory bodies that are affecting the availability and distribution of petroleum products. According to these sources, the current distribution system places Independent Marketers, who operate the majority of retail outlets, at a disadvantage.
The complaints center around the pricing discrepancies in the supply chain. While NNPCL, as the sole importer, sells Premium Motor Spirit (petrol) to private depot owners under DAPPMA at an Ex-depot price of N556.5 per liter, the tank farm owners are reportedly selling to marketers at prices ranging from N700 to N740 per liter. This significant markup, the marketers argue, leaves them with minimal profit margins and forces them to sell at high prices to consumers.
Historically, NNPCL used to allocate petroleum products to tank farm owners with a benchmark price for resale to marketers. However, the current system reportedly lacks such controls, leading to tank farm owners setting their own prices, which are often much higher. This lack of oversight has resulted in allegations of hoarding and inflated prices, with marketers bearing the brunt of public frustration.
Marketers have called for the federal government to intervene by reinstating a regulated Ex-depot price for tank farm owners to ensure fair distribution practices. They argue that without such measures, independent marketers will continue to face high costs and difficulties in serving the public.
“Instead of the NMDPRA focusing on the activities of tank farm owners and enforcing fair pricing, they are using marketers as scapegoats for the issues in the sector,” one marketer said. “The tank farm owners are making substantial profits while ordinary Nigerians suffer.”
The marketers also urged the government to support the Dangote Refinery and revive the country’s four refineries to reduce dependence on imports and stabilize the supply of petroleum products.
The calls for action come as Nigerians continue to face hardships due to fuel shortages and high prices, exacerbated by the current distribution challenges within the petroleum sector.
