The Independent Petroleum Marketers Association of Nigeria (IPMAN) said on Friday that the number of goods provided to marketers has decreased by around 40% amid the ongoing national fuel shortage.
Zarma Mustapha, the deputy president of IPMAN, claimed during a live appearance on Channels Television’s Sunrise Daily that the “weight of subsidies that government is carrying” is no longer sustainable and that this is why the country is in a problematic situation.
He claims that the Federal Government’s “paucity of finances” has been severely impacted by the volume imported by the Nigerian National Petroleum Company Limited (NNPCL), the only importer of Premium Motor Spirit, also known as gasoline.
“Because of that, the supply that we receive as marketers at the loading points, we believe we don’t get what we usually get – even 50 percent of what we get,” Mustapha said.
The number of liftings (sic) between what we had and what we have now has decreased by roughly 50% or 40% since some point in July or August.
The NNPC claimed to have a “national PMS stock of over 2 billion liters” on November 29, 2022. This is sufficient for more than 30 days.
Mustapha hypothesized that the prolonged wait times at gas stations around the country might be caused by the high subsidy costs.
The more things they bring in, “we are just assuming maybe the amount of the products – the bigger the volume, the more the cost of the subsidies,” he continued.
They don’t appear to be bringing in any more, I think. We would receive the same volume at the loading point as usual if they were bringing in more.
“As of today, the amount available is insufficient given the trends (sic) in the private depots. The private depots also make a contribution by withholding the product since the NNPC regulates it.
Price Hike Mustapha noted that he had not heard any formal statements concerning a lack of supply from the NNPC or the organization in charge of regulating the sector, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
But given the way things are going, he continued, “the product is not enough. Normally, they bring it, supply it to the private depots, and we buy from the private depots.
The deputy president of IPMAN stated that independent merchants do not have depots and that NNPC is responsible for importing the goods and delivering them to private depots.
“Yesterday, I purchased a product in Lagos at a depot for N247 per litre, with the intention of having it shipped to the far north for N50–N60 per litre. Even we independent marketers are unable to fully comprehend what is going on.
It is currently selling for around N240 in Lagos, N235 in Warri, and N240 in Port Harcourt as of yesterday. It might cost up to N250 per liter in Calabar.
“As a marketer, you’ll purchase that merchandise to send upstairs to the location of your retail business. You’ll be responsible for moving it, he said.