April 15, 2024

Fuel Scarcity: IPMAN asks NMDPRA to offset its N500bn bridging claims

 

The Independent Petroleum Marketers Association of Nigeria (IPMAN), has called on Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to offset its their bridging claims of N500 billion, to guarantee the smooth distribution of petroleum products across the country.

EnergyDay gathered that the bridging claims is the cost of hauling petroleum products from refineries and depots to fuel stations increased over some months following the scrapping of the Petroleum Equalisation Fund Board, integrated into the newly established Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA)

Alhaji Bashir Danmalam, the State Chairman of IPMAN,in a press conference in Kano called on the Federal Government to prevail on the agency to pay the debt.

Danmallam cautioned that failure to pay marketers their outstanding claims could cause another disruption in fuel distribution. He said the debt had forced many IPMAN members out of business.

He said, “The non-payment of the debt for over eight months has crippled the businesses of many members as they cannot transport available petroleum products.

“The resurfacing of fuel queues in Abuja is just a tip of the iceberg. Only 5 per cent of marketers are still in business,’’ Danmalam lamented.

The Kano State Chairman of IPMAN said that NMDPRA had only paid marketers only twice since it was created to take responsibilities of PEF.

Danmalam called on the Federal Government to intervene before the situation degenerated into a serious fuel crisis spread to other parts of the country.

“We are not agitating for transportation fee increase; we are only clamouring for payment of our bridging claims that is more than N500 billion,’’ he stressed.

EnergyDay’s check revealed due to the accent given to the PIA, the federal government had officially scrapped the Petroleum Equalisation Fund (PEF), which was the special intervention fund put in place to ensure price uniformity of petroleum products across the country,  through the reimbursement of marketers for losses they incur in trucking products from depots to their filling stations anywhere in Nigeria.

The burden was later transferred to Nigerian Midstream and Downstream Petroleum Regulatory Authority which has been engaging the IPMAN.

NMDPRA in February paid bridging claims amounting to N22.7bn to transporters of petroleum products, promising to pay another N30bn to the transporters to ensure the smooth distribution of petroleum products across the country.