In a recent revelation, the Independent Petroleum Marketers Association of Nigeria (IPMAN) has shed light on the soaring fuel prices across the country, citing operational challenges with accessing products from the Nigerian National Petroleum Corporation (NNPC).
According to a report by Vanguard newspaper, IPMAN disclosed that the current surge in pump prices, which has seen fuel selling as high as ₦730 per litre, is primarily due to the inability of operators to source products directly from NNPC, forcing them to resort to the open market.
Chief Chinedu Ukadike, the Public Relations Officer of IPMAN, emphasized that the absence of access to NNPC’s supplies has compelled them to procure fuel from alternative sources such as tank farm owners, major marketers, and privately held depots. This, coupled with increased transportation and logistics costs, has necessitated the upward adjustment in pump prices at IPMAN-operated stations.
Maxi Oliver Okolo, Chairman of IPMAN Aba Depot, elaborated on the challenges faced by independent marketers, stating that they have been loading fuel at exorbitant rates, reaching as high as N800 per litre from privately held depots. Consequently, selling below these procurement costs is deemed financially unfeasible, leading to the plea for government intervention to enable direct access to NNPC depots, thereby fostering fair competition and sustainability within the industry.
As the fuel scarcity persists, surveys conducted in Lagos and Abuja have revealed a significant disparity in pricing between major and independent marketers. While major marketers maintain relatively stable prices averaging N605 per litre, independent marketers have adjusted their rates upwards, averaging N730 per litre and reaching as high as N900 per litre in some areas.
The widening gap in pricing is attributed to a breakdown in NNPC’s systems, affecting the direct access of independent marketers to imported fuel consignments at stipulated depot prices. This setback has inadvertently favored major marketers, prompting concerns over market fairness and competitiveness.
Meanwhile, amidst the tumultuous market conditions, the Major Energy Marketers Association of Nigeria (MEMAN) has managed to uphold a steadier supply and pricing strategy through collaborative efforts among its members. MEMAN’s CEO, Mr. Clement Isong, highlighted initiatives such as product swaps and shared logistics, particularly in the Apapa hub, to mitigate challenges and ensure a more stable fuel supply chain.
Efforts to obtain comments from NNPC regarding the ongoing situation were unsuccessful at the time of this report, leaving stakeholders and consumers anxiously awaiting resolution to the fuel crisis gripping the nation.
Despite the hardships faced by motorists and the growing prevalence of the black market with prices soaring to as high as N1500 per litre, hopes remain pinned on swift government intervention and industry-wide collaboration to alleviate the burden on consumers and restore stability to the fuel market.
