July 13, 2024

IPMAN faction kicks against enforcement of N195/litre petrol price, threatens shut down 


Oredola Adeola

The unsettled rivalry between the two factions of the Independent Marketers Association of Nigeria (IPMAN) is likely to heighten the persistent fuel scarcity witnessed across the country, as Debo Ahmed-led IPMAN has urged its members to shut down all their outlets to avoid nationwide enforcement of N195 per litre pump price of petrol by the authorities.

Debo Ahmed, National President of the IPMAN faction, in a statement released at the weekend, said filling stations operated by its members would be shut from Monday, February 6,2023, insisting that dispensing petrol at N195 per litre does not make business sense when ex-depot price is above N220.

The IPMAN factional leader’s statement is coming on the sideline of the Tuesday meeting between the Nigerian National Petroleum Company Limited (NNPCL), Major Oil Marketers Association of Nigeria (MOMAN), Independent Marketers Association of Nigeria (IPMAN), Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA) and other stakeholders, where all marketers were instructed to sell petrol at a regulated price across the country.

Recall that the Elder Chinedu Okoronkwo, President of the other IPMAN faction, confirmed during an interview on Nigerian Television Authority, Good Morning Nigeria, Programme, and monitored by EnergyDay on Thursday, that all marketers are now loading products at N172/litre ex-depot in all load-out depots nationwide.

According to him, petrol would be available at reasonable prices across the country, since all marketers have been receiving products at the same ex-depot rate.

Elder Chinedu said, “Despite all of the glitches in the supply chain, the recent meeting that we (IPMAN) had with the NNPC and other stakeholders, has brought succour to the system. No tank farm owner can sell above the ex-depot price and official threshold.

“We are satisfied with the process, now that the NNPCL is fully involved in the release and distribution of the products directly to all independent marketers.

“The major oil marketers do not have the liberty to create arbitrage within the supply chain. Every marketer can order products without visiting the depot because everything is now automated. You are given products according to your capacity.

“With the addition of more depots into the supply chains by NNPCL, marketers are digitally supervised and coordinated to pick products, thereby easing logistics glitches,” he stated on NTA.

Meanwhile, Debo, leader of the other IPMAN group, said, depots hardly dispense petrol at the approved ex-depot rate to its members.

He revealed that the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) which is responsible for selling products to IPMAN members, sell petrol to independent marketers above the approved ex-depot price.

He said, “To avoid sanctions, we will be closing our stations.

“Marketers would have to buy from the NNPCL in order to sell at the government-regulated price. Only those with the NNPCL’s loading tickets can sell at the official rate.

“The 21 NNPCL depots across the country that we rely on before now are all moribund and not working. At the moment, we depend on DAPPMAN depots to get our products at the price approved by the NNPCL.

“But most times, DAPPMAN would increase their price and when you buy from them at such a high price, there is no way you are going to sell at a lower price.

“So, if marketers cannot get the NNPCL product to buy at the controlled price, they better not sell to avoid having their stations sealed.

“The truth is that we don’t get the product at the controlled price of N172, which is why you see a lot of areas where they sell at higher prices.

“However, for MOMAN, because they get it at the controlled price, they take it from their depots to their stations and sell it at lower prices compared to independent marketers. the IPMAN faction leader said.

He noted that the enforcement by the security operatives and the regulatory authority would affect independent marketers that dominate 80 percent of retail outlets in Nigeria.

Meanwhile, our correspondent who monitored the situation on Monday, noted that most filling stations in Ogun state on both Lagos/Ibadan and Lagos/Abeokuta axis are selling petrol to motorists between N260 and N300 per litre.

Most filling stations in Lagos were under lock and keys, as few of the stations in the Lagos suburb, including Abule Egba, Agege, Fagba, Ikotun and Mushin have continued to sell to motorists at N250 per litre.

The fuel queues are still paramount in most stations selling at N185 per litre, Mobil stations in Casso and Abule-Egba, along Lagos/Abeokuta expressway, recorded long queues extending to major highways.