Tina Amanda
The Independent Petroleum Marketers Association (IPMAN) has blamed the persisting fuel scarcity on the Nigerian National Petroleum Corporation (NNPC), for shifting the priority of fuel supply from Independent petroleum Marketers to private tank farms.
IPMAN said it is supposed to get petroleum products from NNPC directly at a government-regulated price of one hundred and forty-eight (148) naira per liter and not from private tank farms.
Tochukwu Dominic, IPMAN Vice Chairman in Rivers State, in an interview with our correspondent, expressed concern that buying products from private tank farm owners leaves them with no option but to fall to the detection of private depots.
Dominic explained that so long they keep getting petrol from private depots, fuel pump prices will still be on the increase.
He said: “In the demand-supply mechanism pricing becomes a factor when the demand for a product is high. When a commodity is scarce it means there is limited availability of such product and unlimited demand for the product and in such case, the price of the commodity will change from the status quo to the prevailing situation.
“NNPC is the sole importer of this product while IPMAN is one of the three off-takers of the petroleum products. For whatever reason best known to NNPC they have found comfort in dealing with the private tank farms, where the product is given to them and we petroleum marketers are left with no option but to fall to the detect these private tank farms.
“In a situation where marketers can not source this product directly from NNPC, we are left with no option than to source the product from anywhere just to remain active in our business and to meet up with responsibilities which include payment of workers salaries, servicing of the loan, maintenance of machines and equipment.
“Where IPMAN source this product elsewhere other than NNPC the price may vary.”
He, however, called on the government to expedite action in revitalizing the Port Harcourt refinery that has been moribund for years.
“IPMAN has several times called on the federal government to expedite action in fixing the nation’s moribund refineries. It’s no longer news that the Port Harcourt refinery Depot has been in a comatose for over three years, thereby contributing to the shortfall we witnessed in the supply of petrol.
“The solution is for government to fix refineries, they promised us that by December 2022 the Port Harcourt refinery will be functional, but we have not only seen December gone now we are January 2023. Whatever is their ability to make it functional, it will be for the interest of the masses.”
