Panic as petrol scarcity looms in Nigeria

There is panic over likely petrol scarcity in Nigeria as members of the Independent Petroleum Marketers Association (IPMAN) on Monday raised the alarm over the inability of the Depot and Petroleum Products Marketing Association (DAPPMA) to secure the Federal Government’s approval for selling the Premium Motor Spirit (PMS) petrol at N125 per litre.

The Federal Government on Wednesday, last week reduced the pump price of the product from N145 to N125 per litre.

But the IPMAN National Vice President, Alhaji Abubakar Maigandi, who spoke with The Nation on the phone yesterday, said the marketers were concerned about the government’s commitment to the payment of the credit balance between the old and new rate.

IPMAN, according to him, had written a letter to the Managing Director of the Pipeline Products marketing Company (PPMC), but that it is yet to respond to the issue.

Owing to the worry over the confusion about the government’s non-commitment posture, a delegation of the marketers is billed to meet the Managing Director today (Tuesday).

The National Vice President said the issue was whether there would be sustainable availability of the petrol at the new rate because trucks that were queueing at the depots were yet to load the product due to price disparity.

His words: “The reduction of the petrol price is a good thing to the marketers. But the only challenge is: How will the government give us the credit balance for the product, which they said we should sell at N125?
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“We bought the product for N145 and now the government said we should sell at N125. So, we are looking for how the government will pay the balance.

“We have already written to the Managing Director of PPMC. He has not responded and our intention is to meet him by tomorrow (Tuesday).

‘’We are expecting the demand to be higher because of the price reduction.

“The social restrictions as a result of the coronavirus is affecting our sales. You know if there is no movement the demand for petroleum products will become a little less.

“The question is whether the product will be available this year at N125. They (government) should make it available. The government should direct NNPC to start giving marketers the product at N125…”

Source: THE NATION