DPR says marketers causing artificial scarcity

Department of Petroleum Resources (DPR) says the country’s long running intermitent fuel scarcities are artificial, and the handiwork of unscrupulous oil marketers and depot owners.

These groups are hoarding to create artificial scarcity and then selling petrol at N95 per litre, instead of the approved ex-depot price of N77.66, despite getting supplies from the Nigerian National Petroleum Corporation (NNPC) and also enjoying Petroleum Support Fund (PSF) subsidy, says DPR.

The oil and gas regulatory agency says the marketers are making double gains as they are paid subsidy from the PSF and yet they still arbitrarily increase the exdepot price of petrol.

As of Wednesday, some of the depots sold petrol to dealers at N95 per litre, as against the government approved price.

DPR therefore warns that the licences of offenders would be withdrawn henceforth if they do not desist from such practices, saying the actions of the depot owners who charge a premium of over N17.34 on a litre of petrol, over the officially approved price amounts to defrauding government and the public, since they all get the subsidy for the products they bring into the country.

Mordecai Laden, acting director, DPR, who was represented by O.O. Medei, head of downstream, at a recent meeting with the marketers, said “any operator who sells above the government approved prices would have his licence revoked.

“We want to have interaction with you, in view of thefact that letters have earlier been sent to individual associations in the downstream sector of the oil and gas industry, concerning this unwholesome attitude by the marketers and depot owners to desist from it, but they are not ready to  listen.

“In the last few months, this country has experienced epileptic supply of Premium Motor Spirit (PMS) and this has translated into shortages at the filling stations.

We have evidence to buttress this and this is why in the first place, the letters were written to the marketers.

“We find this trend unacceptable, given that marketers with whom the DPR has constantly interacted have benefifted from the Petroleum Support Fund (PSF), which allows them to carry out their business transactions in such a way that it should guarantee constant and uninterrupted supply of PMS at government approved price.”

Some marketers have consistently flouted government’s directives, especially by selling above ex-depot price, which in turn translates into higher prices at filling stations, he said.

He warned that the DPR would henceforth not allow the supply of petrol to be dictated by the interest of dealers and depot owners to the detriment of the general public.

Kunle Bamigboye, representing the Independent Marketers Association of Nigeria (IPMAN), Western zone, said the members depend on the NNPC depots, and when there was no fuel in NNPC depots, they go to members of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN).

It is only at the NNPC depots that they can take fuel at government approved prices, Bamigboye said.