Fuel Scarcity: Equitable petrol allocation to oil marketers will douse scarcity- IPMAN
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has advised the Nigerian National Petroleum Company Ltd. (NNPC) to improve on the importation to petrol to marketers as well as its equitable allocation to them.
Its National President, Mr Debo Ahmed, gave the advice against the backdrop of ongoing scarcity of Premium Motor Spirit popularly known as fuel in the country.
Ahmed said: “IPMAN have the highest market share but we do not have allocation of petrol to commensurate to our market share.
“Leaving IPMAN members at the mercy of private depot owners at that high rate will not bring down the prices nor douse the scarcity.
“IPMAN members cannot assess petrol effectively from private depots with their over blotted prices ranging from N215 – N220 per litre excluding transportation and deport expenses.
“What NNPC Limited has to do to allocate petrol to IPMAN at designated depots across the country for IPMAN members to buy at controlled price.
“After all NNPC Ltd has been allocating products to major marketers and at the same time selling to private depot owners at the rate that had taken into consideration their margins,” he said.
Ahmed said the private depot owners have to sell to IPMAN members at N148.17 but they are not doing that.
“The perception of the public to oil marketers at period of scarcity like presently happening is too appalling accusing oil marketers of over pricing, hoarding, etc.
“Before the scarcity when petrol was available, there was no pricing issue. Sales at the various filling station was smooth as per government control price, but immediately private depot owners started increasing their prices the bandwagon effects became noticeable at the filling stations.
“The increase in price of petrol at the filling stations was as a result of the increase in price at the private depots where IPMAN members buy their products,” he added.
According to Ahmed, “The other aspect that exacerbate the fuel scarcity was the non-availability of petrol in the system.
“Usually when importation cannot meet up our consumption, the demand becomes more than the supply which invariably distort pricing equilibrium. NNPC Lmited should import massively.
“The other issue is hoarding. At any time scarcity occurs, the public is made to believe that marketers are hoarding.
- “At what price are marketers going to hoard petrol? Scarcity period are temporary, no marketers can take that risk, when the scarcity can be abated impromptu.
“Time value of money is of essence because bank charges are running. An oil marketer has to be pragmatic in its management of its liquid assets.
“The public should remove hoarding from their mindset and see scarcity as a flip-gap of the system which will be remedied in due coursehe explained.
Ahmed advised that NNPC should upscale its planning to take into consideration period of high movement of persons during the yuletide period and election year.
He added that the company should improve on its importation more equitable in their allocation of petrol to oil marketers and see the positive.
