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Fuel Scarcity: Are oil marketers a soft target

The current scarcity of petroleum products, especially Premium Motor Spirit (PMS), known as Petrol, has seen accusing fingers pointing at the product marketers, but they have denied hoarding any fuel.

The marketers have been blamed by many, including some Government officials and some part of the general public, for taking advantage of fuel distribution to divert and hoard supplies by the Nigerian National Petroleum Commission (NNPC).

The Independent Petroleum Marketers Association of Nigeria (IPMAN), has blamed the current fuel crisis on hoarding of the commodity by some depot owners and petroleum products marketers.

NNPC also accused the marketers of being part of the problem due to the rumours of a purported planned increase in pump price.

But reacting to the claims, the Executive Secretary of the Depot and Petroleum Products Marketers Association (DAPPMA), Olufemi Adewole, said they are not responsible for the current fuel crisis in the Country as they have already emptied their tanks.

“Sadly, some people have blamed marketers for hoarding products. Unfortunately, this is far from the truth.

“Our members’ depots are presently empty. However, if the PPMC/NNPC can provide us with petrol, we are ready to do 24-hour loading to alleviate the sufferings of Nigerians and for the fuel queues to be totally eliminated.”

Adewole stated that marketers always have issues with NNPC whenever it assumes the role of a sole importer which its currently doing, as 80% of the functional receptive facilities and retail outlets in Nigeria are owned by Marketers.

“Historically, DAPPMA members imported about 65 percent of the nation’s total fuel consumption. Major Oil Marketers Association of Nigeria (MOMAN) imports about 15 percent and PPMC/NNPC imports the balance of 20 percent.

“However this scenario changed drastically due to several challenges faced by marketers.”

DAPPMA also noted that about 800 million litres of petrol have been ordered and paid for without it being programmed or loaded and its members would have to rely on subsidy to import fuel because the landing cost of petrol is already above N145 per litre.

NNPC also responded to the allegations made by the Association, saying it’s being insincere and describing it claims as very unfortunate.

“NNPC wishes to affirm that it has supplied appreciable volume to DAPPMA, Major Marketers Association of Nigeria (MOMAN) and Independent Petroleum Marketers of Nigeria (IPMAN) to rid the challenges currently being experienced in the supply and distribution of petroleum products in the country,” the NNPC said in a statement by its Spokesperson, Ndu Ughamadu.

Ughamadu claimed that NNPC became the sole importer and supplier of petrol to the Nigerian market because DAPPMA members were unable to meet expectations.

Some have argued that the Oil marketers are easily targeted because of their role as the middlemen between the NNPC and the consumers, as NNPC would not want to be seen as the ones responsible for the plight of Nigerians.

Last month, NNPC had announced that it has saved over 2 Billion litres of petrol for the festive period which is capable of sustaining the Country till the New Year.

The government had on two different occasions given 28 million and 50 million litres as daily consumption. This would have meant the NNPC was ready for the Nation for a period of 71 or 40 days in the event of an emergency.

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