… As MOMAN advocates phased deregulation of petrol, following Scarcity***

The Independent Petroleum Marketers Association of Nigeria (IPMAN) and Association of Distributors and Transporters of Petroleum Products (ADITOP) have urged their members not to sell Premium Motor Spirit (PMS) above N165 per litre.

This is coming after some members of IPMAN in Lagos urged their members to sell fuel above N180 per litre.

Also read: Fuel queues return to Lagos as IPMAN members shut stations

Speaking at a news conference in Abuja on Wednesday, the IPMAN National President, Mr Chinedu Okoronkwo, said his members earlier briefed him on why they wanted a price hike.

Okoronkwo said that the Federal Government had released enough fuel from their depot which enabled them to maintain the status quo.

He said they had engaged the services of Benham Group to recover money owed to them for the supply of petroleum products adding that the partnership would help in ending fuel scarcity.

“Our business required technology, that is why we brought a seasoned financial expert and we have been able to recover a lot of funds in other countries and Nigeria.

“The incessant accidents and destruction of trucks on the road, banditry and kidnapping is the reason we are bringing the insurance company to help us.

“Leaving the risk for the owner of the truck to bear will affect our businesses,” Okoronkwo said.

“Our members in Lagos were getting the fuel at N170/N173 that’s why they wanted price increased.

“It’s only the NNPC that is importing the product.

The cost of doing business has changed, so it becomes difficult to sell at N165 per litre.

“That is why we are thanking the NNPC for bringing the product to N143. So, our members must sell the product at N165 which is the government-approved price.”

Also speaking, the National President, ADITOP, Alhaji Mohammed Danzaki, said Nigerians had been suffering from fuel scarcity because of problems the association was facing.

“ADITOP and IPMAN are the ones suffering since we need a return for our investment.

“NNPC has done a lot to import the product but the main issue is the transportation.

“We have not been getting our payments.

That’s why we engaged a financial expert, Benham Group, to recoup our money for Nigerians to get regular supplies in the fuel stations,” Danzaki said.

The chief consultant and the chairman of Benham Group, Dr Maurice Ibe, said the collaboration was to ensure the stabilisation of fuel supply at the filling stations.

Ibe said they were doing everything possible to stabilise the activities of the downstream sector and ensure that the product was transported to every nook and cranny of the country.

In the meantime, the Major Oil Marketers Association of Nigeria (MOMAN) has recommended gradual price deregulation for Premium Motor Spirit (PMS) to reduce the subsidy burden on the nation.

MOMAN said the move should be supported with targeted palliatives in areas such as transport and agriculture to the public to ease the implementation.

Mr Olumide Adeosun, Chairman, MOMAN, made the recommendation at a news briefing on Wednesday in Lagos while reacting to the recurrent scarcity of PMS, also known as petrol, in the country.

“MOMAN, as an association, fears that the current supply framework cannot guarantee steady and consistent supplies to the country given the current state of government finances and unpredictable international supply shortages.

“We, therefore, recommend gradual price deregulation with targeted palliatives (eg. transport and agricultural subsidies) to the public to ease implementation.

“However, in the interim, MOMAN recommends that the current single supplier strategy be reviewed,” Adeosun said.

He urged the Ministry of Petroleum Resources, Ministry of Finance and other relevant agencies to set up a task force to immediately focus on increasing diesel supply through accelerated initiatives to increase local modular refining capacity.

According to him, this move will tackle the supply and distribution challenges.

He also called for a phased rehabilitation of the nation’s refineries to hasten the supply of diesel and aviation fuel to reduce cost of transportation in the country.

Adeosun explained that the current scarcity was occasioned by two main reasons, which were inadequate supply and distribution challenges created by the unavailability and continuous surge in international prices of diesel.

He said the supplies received at the Apapa Jetty, according to the Pipelines and Product Marketing Company, showed that marketers received 438,800 metric tons of PMS in April.

The MOMAN chairman said the supply dropped to 213,100MT in May and 140,000MT so far in June, excluding the 64,000MT that was currently being discharged at the jetty.

While empathizing with Nigerians on the situation, he said MOMAN members were working with all the petroleum industry stakeholders to make petrol available at the pumps and eliminate the queues as quickly as possible.

He said the association would continually do its best to distribute petrol to its customers across the country and keep exploring opportunities to partner with industry stakeholders, the agencies and the government to ensure the sustainability of the downstream sector.

Adeosun, however, noted that the full deregulation of the downstream sector and full implementation of the Petroleum Industry Act (PIA) 2021 were the most viable long-term solution to the country’s supply and distribution challenges.