IPMAN Raises Alarm Over Imminent Fuel Scarcity, Criticizes NNPC Pricing Strategy

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has sounded a warning about a potential fuel scarcity, despite the increasing cost of petroleum products in the country.

Addressing journalists in Ilorin on Friday, IPMAN’s National Public Relations Officer (PRO), Alhaji Okanlawon Sulaiman Olanrewaju, stated that disagreements have emerged between the association and the Nigerian National Petroleum Company Limited (NNPCL) over pricing issues.

He highlighted that the current price being imposed by the NNPCL is unsustainable and could lead to a fuel crisis.

“The problem IPMAN is facing in the downstream oil sector is confounding. We realize that what NNPC is imposing on us is too much.

“NNPCL wants to sell at N1,010 to IPMAN. This price is even higher than what NNPCL sells at their retail outlets after including transportation costs,” Okanlawon said.

He added that the NNPCL’s new pricing policy could cripple the operations of petroleum marketers.

“It’s like they want to tag us as bad marketers,” he said, emphasizing that the situation is unacceptable to IPMAN members.

According to Okanlawon, the marketers had already deposited about N15 billion into NNPCL’s account months ago for product purchases at the old price of N750 per litre, yet they are being asked to pay additional funds to receive the product.

“Presently, our members have paid a lot of money, about N15 billion, into NNPCL account for months and they’ve not given us the product. Now they want to increase the price. Our president has instructed that every member of the IPMAN should stay put until further notice,” Okanlawon added.

While acknowledging that this standoff could lead to fuel scarcity, he cautioned that IPMAN cannot continue under these unfavorable conditions, especially with rising loan interest rates from banks.

Okanlawon, however, rejected the idea of returning to a subsidy regime, stating that full deregulation of the downstream oil sector remains the best long-term solution. “NNPC should not be the sole off-taker of Dangote fuel. If it’s opened up, the price would be crashing down,” he said.

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