Amidst the scarcity of petrol at retail outlets across the country and the demand for downward review of prices by agitated Nigerians, certain downstream operators have called on President Bola Tinubu to take more than passing interest in the activities of the Nigerian National Petroleum Company Limited (NNPCL), the Depots and Petroleum Products Marketers Association of Nigeria (DAPPMA) and the regulatory agency, Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
Some of the marketers who spoke with our reporter in confidence alleged shady deals between the oil giant, NNPC, the tank farm owners, and the NMDPRA which they noted were inimical to the availability of the products and seamless distribution to retail outlets.
The marketers who craved to speak under anonymity revealed that NNPCL being the sole importer of the products now put the Independent Marketers whom they noted have the largest retail outlets in the country at the mercy of the DAPPMA, (the tank farm owners).
Investigation revealed that the NNPCL, the sole importer gives the Premium Motor Spirit (petrol) to the private depot owners operating under the aegis of DAPPMA at Ex- depot price of N556.5 per litre.
Further checks however revealed that the tank farm owners sell to marketers at N700 to N740.00, leaving them with little or no marginal profit to sell at stations.
Tankfarm owners vice-grip
Recalling the previous experience in the sector when the NNPCL used to release petroleum products allocation to tank farm owners for distribution to marketers with a benchmark on price, the industry operators called on the federal government to sanitize the distribution chain by prevailing on the NNPCL and its regulatory arm, the NMDPRA to insist on an Ex- depot price for the tank farm owners.
They said: “What we used to have in the past was an arrangement where the NNPCL gave allocations meant for Independent marketers to the private depot owners to sell to marketers with a benchmark, a reasonable price.
“Now, the independent marketers have no allocation, they are at the mercy of the tank farm owners. A situation where there is no ex-depot price won’t augur well for the industry. Private depot owners now sell at N800 to those of us who will sell at retail outlets to ordinary Nigerians.
“We are the ones Nigerians are accusing of hoarding products and selling at exorbitant prices.
“Instead of the midstream regulatory agency doing its job by beaming searchlight on the activities of the tank farm owners, by insisting on Ex- depot price they are using the marketers as scapegoats.
“There is a cabal in the sector creating problem for President Bola Ahmed Tinubu. He must show the determined will to break their rank. How many stations do tank farm owners have.? But they are making huge profits to the detriment of Nigerians.”
The marketers who expressed the hope that giving the necessary incentives to the Dangote Refinery would go a long way in addressing the shortfall in product availability also called on the federal government to make the four refineries work to put an end to product importation.
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