The agreement between the Independent Marketers Association of Nigeria (IPMAN) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) on an ex-depot price of N172 is noted as putting an end to the country’s long filling station lines and petroleum marketers’ extortion.
Ayo Cardoso, the South West Regional Coordinator for the NMDPRA, promised that the Authority would step up its enforcement efforts to ensure that the N172 ex-depot price is enforced consistently across the country during a visit to the Ijegun tank farms and depots in the Ijegun Egba area of Lagos State.
He claims that the Authority constantly keeps an eye on the entire system, from the ship to the retail location.
In his words: “We are finally seeing light at the end of the tunnel, because we have sufficient petroleum products in the system and I can assure you that in some few days, the fuel scarcity will be addressed,” he assured.
He stated that there are already more than 1.3 billion liters of Petroleum Motor Spirit (PMS) available for distribution, ending the shortage.
“As of today, the inland depots have about 580 million litres of fuel and the offshore, we have about 690 million litres as well. Altogether, we have about 1.3 billion litres. So, that shows that we have enough fuel for circulation representing 52 per cent sufficiency gauge. We know we have issues with distribution, but they are being addressed,” he added.
In response to a query concerning the Authority’s intentions regarding wrongdoing petroleum marketers who sell above the set price, Cardoso stated that the Authority will shut down the businesses of wrongdoing petroleum marketers once things resumed as usual.
“Although, the Federal Government has not categorically come out to say that the regulated price has changed, but the template we are operating before is no longer tenable. What we are talking about now is an adjusted price on the regulated price,” he added.
Additionally speaking, IPMAN’s National Operations Controller, Mike Osatuyi, said that all of its members have been directed to sell at N172 and that any members who do so will be reported to the Authority.
“I have told my members that nobody should buy above N172 and if any marketer is selling above that, the marketer would be reported. We urge the federal government, through the NNPC, to beef up supply to Ijegun Abule-Ado tank farm, because they account for about one-third of the loading out in Lagos and this is where IPMAN get their products too. There is a need to supply the system effectively so that there will not be any gap.”
“We need back to back supply to the tank farms and IPMAN account for 80 per cent of their customers. We have a surveillance committee that is monitoring the activities of our members. We have also had discussions internally to say since the government will be selling to us at N172 ex-depot price, we need to behave and we believe our members would comply accordingly,” he averred.
The visit, according to Debo Olujimu, chairman of the Ijegun-Egba Tank Farm Owners Association, was made so that regulators and all Nigerians would be aware that PMS is completely accessible and is offered at the set price set by the government in all depots in Ijegun.
“What we have been receiving so far from NNPC as of date is over 150 million litres. We are telling Nigerians that this product is coming out of the tank farms at the government regulated price and Nigerians can trust us and going forward, we expect that products would be sold at the retail end of the business at affordable prices which the government has fixed.
“The official price remains what NNPC has been selling which is about N170 per litre and when you add up all the extra cost it sums up to N172 ex-depot,” he continued.
Umar Aliyu, the terminal manager at Emadeb Energy Services Limited, stated that the Ijegun-Egba axis contributes to roughly 35% of the truck traffic in Lagos and expressed optimism that the fuel shortage crisis will be resolved over the next seven to eight days.
“We are just receiving about 26 million litres of PMS. We will commence loading as soon as possible. We intend to load 24/7. We are most grateful to the federal government for intervening to ensure that we have these cargoes on time. We have six loading arms for PMS and we are capable of trucking out about 4 million litres a day,” he said.
