Blaming the scarcity of petroleum products on alleged shady dealings involving the Nigerian National Petroleum Company Limited (NNPCL), Depots and Petroleum Products Marketers Association of Nigeria (DAPPMA), and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), petroleum marketers have raised concerns.
According to the marketers, the deals among NNPC, tank farm owners, and NMDPRA have hindered the availability of products and smooth distribution to retail outlets.
Requesting urgent intervention from President Bola Tinubu, downstream operators highlighted the challenges faced due to NNPCL being the sole importer and placing Independent Marketers, who own the largest retail outlets in the country, at the mercy of DAPPMA (tank farm owners).
NNPCL, as the sole importer, provides petrol to private depot owners under DAPPMA at a depot price of N556.5 per litre. However, investigations reveal that tank farm owners sell to marketers at N700 to N740.00, resulting in minimal profit margins for retail sales.
Expressing frustration, one anonymous marketer stated, “Previously, NNPCL allocated products meant for Independent marketers to private depot owners for sale to marketers at a fair price. With the absence of such an arrangement now, independent marketers rely on tank farm owners. The lack of an ex-depot price mechanism poses a threat to the industry. Private depot owners sell at N800 to retail marketers, leading to allegations of hoarding and overpricing against us.”
Concerns were also raised about the actions of the midstream regulatory agency, which seems to target marketers instead of scrutinizing tank farm owners. The marketer added, “There is a clique within the sector causing trouble for President Bola Ahmed Tinubu. He needs to demonstrate determination in addressing this issue. Despite having fewer retail stations, tank farm owners profit significantly at the expense of Nigerians.”