Depot and Petroleum Products Marketers’ Association of Nigeria (DAPPMAN) has linked the ongoing fuel scarcity in the country to the ripple effects of the Russian/Ukraine war that has made the cost of running businesses in Nigeria to skyrocket.
The Association in a statement signed by its Executive Secretary, Olufemi Adebayo Adewole, and made available to the media, noted that impact of the Russian/Ukraine war isn’t just on Nigeria but has made the prices of global and local fuel and food supply to go up astronomically.
Adewole said: “Member companies of Depot and Petroleum Products Marketers’ Association of Nigeria (DAPPMAN) empathize with our dear customers and the teeming Nigerian public on the current distribution hiccups in the supply of premium motor spirit (petrol) from the various petrol stations dispensing at N165 per litre.
“Nigerians would recall that the on-going Russian / Ukraine War has adversely affected the whole world, including our country Nigeria, impacting negatively on global and local fuel and food supply, as the international prices of these items have risen astronomically and have more than doubled their old rates since the beginning of the war, thereby causing extreme increases in local prices.
“By extension, the local running costs of operating our various fuel depots have gone up astronomically. The petrol we supply is sourced solely from NNPC Limited’s marketing subsidiary, Petroleum Products Marketing Company Limited (PPMC) for sale to the public at the regulated price of N165 per litre. This purchase is made by Depot Operators with funds sourced with high bank interest charges, alongside increased costs of hiring vessels, with which we deliver the fuel cargoes to our depots. These costs have doubled within the period of this Russian/Ukraine war. Added to this is the scarcity of bunkers (ship’s fuel). We also experienced astronomical increases in the cost of diesel used to power equipment and machinery in our various depots and our retail outlets.
“Depot Owners and the Government have continued to struggle over time to sustain supply of PMS at the current pump price of N165 per litre despite the huge subsidy cost to Government and abysmal margins to the Depot owners.
“But for its suspension, the implementation of the Petroleum Industry Act 2021 would have provided an ideal enabling environment by creating the free market in which demand and supply would affect fuel pump price.
“We hereby assure the public that Depot Owners, working in concert with NNPC Limited, through its marketing subsidiary, will continue to work hard to ensure availability of products nationwide.”
