“The key issue is a price war. The marketers have made representation to the Federal Government and the Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu, to allow price hike of petroleum products and leave the sector to market forces,” the report noted.
Browsing: Independent Petroleum Marketers Association of Nigeria
Fari explained that when the proposed oil tank field and refinery project is executed, it will have tremendous economic effects like ensuring regular availability and stabilising the prices of petroleum products throughout the federation.
Isong explained that the private depot owners were selling the product to marketers at N144 as against the approved rate of N133.28 at the NNPC depots.
The members of the IPMAN have said that they buy petrol at N142 per litre from the Depots and Petroleum Products Association of Nigeria (DAPMAN), a price, which has left them with little or no gains, after adding transportation and other incremental costs.
Nigeria was among countries with highest gas flare rates, but a number of Clean Development Mechanism (CDM) projects aimed at appropriate gas utilization have improved the country’s standing in this the regard.
“It is rather unfortunate that any time oil pipelines and associated facilities are vandalized, our ability to supply petroleum products to the nation is hampered, and the livelihood of many law abiding people negatively impacted,” he said.
According to the statement, many of the oil marketing companies are owed up to nine months’ salaries while some marketers have resorted to retrenchment of workers.
“So after investigation, we were able to find out that there is N349.8 billion as legacy/bad debts and debts on current transactions. The commission was able to make recoveries of N328.8 billion from the nine major marketers from July 2016 to July 2017.”
The study showed that NNPC Mega Stations and its affiliates across the country sold the product for N160 per litre while many major and independent marketers in Abuja, Lagos, Kaduna, Onitsha, Enugu, Makurdi and most major cities were selling between N160 and N165 per litre. In Port Harcourt the average price is as low as N150 per litre.
“We need the governance bill to set up the framework for the following as stated in the governance bill document – Create efficient and effective governing institutions with clear and separate roles, establish a framework for the creation of commercially oriented and profit driven entities, promote transparency and accountability and finally foster a conducive business environment.”