Petroleum Marketers Blame Scarcity on Alleged Shady Deals in Nigeria’s Oil Sector
A row has erupted in Nigeria’s oil sector, with petroleum marketers accusing 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) of engaging in shady deals that are exacerbating the current scarcity of petroleum products.
The marketers, who spoke on condition of anonymity, claimed that the deals are harming the availability of products and disrupting seamless distribution to retail outlets. They have called on President Bola Tinubu to intervene urgently in the issue.
According to the marketers, NNPCL, the sole importer of petroleum products, has created a situation where independent marketers are at the mercy of private depot owners. While NNPCL gives petrol to depot owners at a depot price of N556.5 per litre, the owners sell to marketers at N700 to N740.00, leaving them with little or no profit to sell at stations.
"Before, we had an arrangement where NNPCL gave allocations to independent marketers to sell to marketers with a benchmark price. Now, we have no allocation and are at the mercy of tank farm owners," said one of the marketers. "Private depot owners are now selling to us at N800, which is not feasible for us to sell at retail outlets to ordinary Nigerians."
The marketers claimed that they are being accused of hoarding products and selling at exorbitant prices, but argued that the midstream regulatory agency is not doing its job in investigating the activities of tank farm owners. They demanded that the agency insist on an ex-depot price and hold tank farm owners accountable.
"We urge President Tinubu to show a determined will to break the cabal in the sector, which is creating problems for the country," the marketer said.
The controversy has raised questions about the transparency and accountability of the oil sector, and the impact it has on the everyday lives of Nigerians.
