THE Independent Petroleum Marketers Association of Nigeria (IPMAN) has reported that its members are currently facing a severe shortage of Premium Motor Spirit, commonly known as petrol, amidst the ongoing fuel scarcity across the country.
With over 3,000 members controlling the majority of filling stations nationwide, IPMAN is a significant player in Nigeria’s petroleum market.
Engr. Shina Amoo, Chairman of IPMAN’s Ore Depot, speaking today, and expressed concern that the Nigerian National Petroleum Company Limited (NNPCL), which is currently the sole importer of petroleum products, has failed to supply enough fuel to meet the needs of its members over the past three years.
He stated, “There is no supply available anywhere. The little supply that does exist is not being well distributed. We have long raised concerns about the distribution process. Previously, we had a 70/30 supply arrangement based on our strength. Independent marketers are present in many areas, including villages and urban centers, where major and semi-major marketers are not found.
“But now, IPMAN is not even considered when it comes to supply. If you visit 50 petrol stations and take a random sample, you’ll find that only three to eight are selling fuel, and they are getting it at premium prices. Private depots are selling to us at prices between ₦750 and ₦850 per liter, far above the official rate.
“For years, instead of getting products from NNPC at ₦560 per liter, we have had to wait months after payment before receiving any fuel. This delay erodes our profits. As a result, we now rely on private depots, even though they sell at premium prices of ₦800 to ₦870 per liter.
“Previously, payments to NNPC for products at Ore Depot would result in loading within a week. Today, the process is bogged down by bureaucracy, with a waiting time of up to four months. Now, we source products from depots in Delta State at higher costs. After paying ₦800 per liter, we incur additional transportation costs of about ₦22 per liter to bring the product to Akure.”
Amoo criticized NNPC’s abandonment of the previous distribution pattern, which has led to reduced supply for IPMAN while favoring DAPPMAN and MEMAN. He identified the core issues as the fuel subsidy and NNPCL’s role as the sole importer.
Amoo also noted that the recent removal of subsidies has led to higher depot prices, but argued that eliminating corruption in the downstream sector could help reduce product prices.
