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Fuel subsidy, Hurricane Katrina; reasons why Oil Marketers cannot keep selling fuel at N145

The Chairman of Depot and Petroleum Marketers Association of Nigeria (DAPMAN), Dapo Abiodun, has iterated that the absence of fuel subsidy and Hurricane Katrina are major reasons they cannot continue to sell fuel at the rate of N145 per litre.

Abiodun disclosed this in a meeting with stakeholders at the Presidential Villa in Abuja, which had in attendance, the Chief of Staff to the President, Abba Kyari, Group Managing Director of the Nigerian National Petroleum Corporation (NNPC).

The meeting was also attended by the Minister of State for Petroleum Resources, Ibe Kachikwu, and Director-General of the Department of State Services (DSS), Lawal Daura, was aimed at finding a lasting solution to the fuel crisis bedevilling the Country.

“Today’s meeting was called at the instance of the Chief of Staff to the President and it was to find out exactly what happened, where we had the problems we had in December with the supply of petrol and how Nigerians were made to go through the pains and suffering,” he said.

According to the Mr Abiodun, crude prices had remained relatively stable from January to December until his members became unable to import and sell at N145 per litre when the prices went up.

“Since the price of crude is directly proportional to the refined product, we could not import petrol and sell at N145 anymore. And this business is a partnership between marketers and NNPC. Marketers bring in a certain volume and NNPC also brings in a certain volume.”

Mr Dapo added that in the past, marketers bring in about 60% while NNPC brings about 35 to 40 percent, but by October, marketers completely stopped importing because there was no more subsidy, which made them unable to sell for profit and stop importing.

“From our point of view as marketers, we made our submission known to Government and we emphasised the fact that this was not a marketer-related problem. There was no hoarding on the part of any marketer. Marketers are your brothers, they are Nigerian citizens, they are businessmen, no marketer makes money from hoarding petroleum products, our business is to take petrol and sell.

“So, the burden of importing 100% now fell on NNPC. So you can imagine a situation where NNPC was importing in part and marketers were importing in part and then suddenly NNPC begins to import 100%. Couple with the fact that in the months we called the ember months from October to December, the consumption of petrol is highest in the country.”

Stating all these as the reasons for the scarcity of petroleum products in the Country, he praised the NNPC for its intervention in importing and supplying across the Country which has put the situation under control.

He also noted that a Committee has been set up to meet under the Chairmanship of the Minister of Petroleum to find a lasting solution to the problem and ensure it does not reoccur.

Editor’s Note: It is not clear if Mr. Abiodun meant Hurricane Harvey, even as it seems.

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