Depots in Ijegun, Lagos sell petrol at N172/litre ex-depot price, confirm 150m litres  in stock  

Oredola Adeola

Owners of petroleum products tank farms in Ijegun-Egba, Satellite Town, Lagos, consisting of Emadeb Energy Services, A.A. Rano Energy, Rain Oil,  Menj Oil, and Ocean Pride, have revealed the plan to ease the perennial petrol scarcity with massive loading and evacuation of 150 million litres of petrol allocated to them and sell to marketers at government-approved ex-depot price of N172 per litre.

Mr. Debo Olujimi, Chairman of Tank Farm Owners Association, mentioned this to newsmen in Lagos after confirming the direct allocation of PMS delivered to the depots by the Nigerian National Petroleum Company Ltd.,(NNPCL) on Thursday.

According to him, Nigerians should be aware that petrol had become fully available and sold at government-regulated ex-depot price of N172 per litre at all Satellite depots.

“We are assuring Nigerians that the product will be sold at regulated price and we have commenced massive loading to all states of the federation to ease scarcity.

“We want Nigerians to trust us, and we assure that the product will be distributed effectively as directed by the government to ease scarcity and eradicate panic buying.

“In going forward the product will be sold at the regulated pump price in all Independent Petroleum Marketers Association of Nigeria (IPMAN) and Major Marketers Association of Nigeria (MOMAN) filling stations across the country.

“We have also promised to sanction any depot within the satellite town that sell above the regulated ex-depot price,” Chairman of Tank Farm Owners Association said.

Olujimi, who is also the Chief Executive Officer of Emadeb Energy Services, said the tank farms located in Satellite Town played a pivotal part in petroleum distribution in Nigeria, accounting for 35 per cent of national petroleum product distribution.

He said that the transfer of product from the mother vessel, which usually costs $21,000 dollars per day, had increased to $85,000 dollars per day.

He said, “The price has been reduced as of February, it is between $60, 000 dollars to $65,000 per day.  We encourage NNPCL to get additional vessels to reduce the price further.

He said the process which often required 10 days posed a serious challenge to depot owners in evacuating the product from offshore lines to the depots, adding that depot owners spend about $1.2 million dollars to evacuate the product from offshore to the depots.

Olujimi also frowned at NIMASA and NPA who were charging in dollars, this has also increased the cost of shipment.

Mr Mike Osatuyi, Indepedent Petroleum Marketers Association of Nigeria(IPMAN), National Operations Controller, commended the depot owners for the commitent to sell petrol at a regulated ex-depot price to marketers.

Osatuyi said, “With this new price, have told my members that nobody should buy petrol above the regulated price of N172 ex-depot; any depot that sells above the regulated price should be reported to the government.

He expressed worry over the sustainability of the supply to the depot by the government, adding it would be appreciated if it continued so as to ease scarcity.

“Today we are flagging off the direct loading for IPMAN members, we appeal to the government to ensure the sustainability of the product to our members.

“Our members were over 85 per cent of depot owners’ customers and we appeal to the authority to give IPMAN members little time to sell remaining stocks in our stations.

“IPMAN members are at all nooks and crannies of Nigeria because all the 21 depots of government are not working,” he said.

He urged the Federal Government to beef up products to Ijegun Egba satellite depot, adding that the depots were responsible for about 35 per cent of product distribution in Lagos.

“Government, through NNPCL, needs to supply the system with petrol continuously to bridge the supply gap.

“Back-to-back supply and supply to tank farm owners in Ijegun Satellite town it needed to ease scarcity.

“IPMAN accounts for about 80 per cent customers across the country, this will ease supply and also create seamless operations,” he said.

He added that since government had agreed to supply petrol directly to its members at N172 per litre, the association had also inaugurated a task force that would keep watch over members that might want to sell above the regulated pump price.

 Osatuyi said, “We are going to comply with government regulations on official pricing. We also urge government and depot owners to comply with an official ex-depot price to marketers.

“We appeal to depot owners to put their house in other because we are going to report any depot who sell above regulated price of N172 per litre to IPMAN members,” Osatuyi added.

Mr Ayo Cardoso, the Regional Coordinator, Southwest of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), said the authority had been monitoring the system from the vessel to the pump.

Cardoso said, “We have sufficient petrol in the system; l can assure you that in few days the scarcity will ease off.

“The inland depots have about 580 million litres, the offshore have about 690 million litres of petrol, which means that we have about 1.3 billion litres of petrol. We, therefore, have sufficient fuel in the country which translates to 52-day stock sufficiency.

Cardoso however disclosed that the distribution issues are being addressed, promising to conduct a tour of filling stations in the zone to monitor distribution in order to checkmate marketers.