Fuel crisis: Marketers raise issue of price increase or subsidy

Fuel crisis: Marketers raise issue of price increase or subsidy

Tuesday, December 26, 2017 9:48 pm

People queue for fuel in Nigeria

By Ademola Adegbamigbe

When the fuel crisis started, it was attributed to the illegal sacking of workers of an oil company. And when that was resolved, the problem remains like the myth of Sisyphus–an eternity of futile labor or punishment inflicted by the gods!

Now the Depot and Petroleum Products Marketers Association (DAPPMA) has come out with a statement signed by its Executive Secretary, Mr. Olufemi Adewole that the current import price of petrol is about N170 per litre and that the Nigerian National Petroleum Corporation (NNPC) which absorbs the subsidy on behalf of the Federal Government is the importer of last resort.

The association added that Nigeria runs a fixed price of N145 per litre and any company that imports may have to resort to subsidy claims already abolished by FG. Since there is no room for subsidy claims, if they import at such a high price, it makes business sense to sell at a higher rate.

Here lies the foundation of the current crisis. While debunking the allegation that marketers were responsible for the current fuel crisis as a result of hoarding, the association argued that
“Our members’ depots are presently empty” and that the problem “had to do with the NNPC becoming the sole marketer of the product.”

“It is on record that any time NNPC assumes the role of sole importer there are issues of distribution, because it is marketers who own 80 per cent of the functional receptive facilities and retail outlets in Nigeria.

“Historically, DAPPMA members imported about 65 per cent of the nation’s total fuel consumption. Major Oil Marketers Association of Nigeria (MOMAN) imports about 15 per cent and PPMC/NNPC imports the balance of 20 per cent.

“However this scenario changed drastically due to several challenges faced by marketers.

“Our members’ depots are presently empty. However, if the PPMC/NNPC can provide us with petrol, we are ready to do 24-hour loading to alleviate the sufferings of Nigerians and for the fuel queues to be totally eliminated.”

“We, petroleum products marketers, do empathise with all Nigerians who are going through difficulties at this time by spending hours on fuel queues because of the current fuel scarcity due to no fault of theirs.”

Here is the full statement:

The press statement

The press statement

The press statement

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