Fuel Scarcity: IPMAN Reveals Why Filling Stations Are Selling At Over ₦700 Per Liter

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has revealed why stations across the country are currently selling fuel as high as ₦730 per litre.

Vanguard newspaper reports that IPMAN revealed that the higher pump prices were caused by operators being left to source products from the open market.

“We buy from tank farm owners, major marketers, and depot owners. For some time now, we have not been able to get products from NNPC because the portal is down,” said IPMAN’s Public Relations Officer, Chief Chinedu Ukadike.

He explained that the costs incurred in transportation and logistics necessitate the price hike at their pumps.

Our source reports that the Chairman of IPMAN Aba Depot, Maxi Oliver Okolo, also discussed the reason behind the higher pump pricing at IPMAN-operated stations, stating that independent marketers were loading at N800 per litre from privately held depots.

“It’s impossible for us to sell below that amount and that is why we have asked the government to intervene and ensure that we also get our products directly from NNPC depots. That is the only way we can compete and remain profitable.

“Many of our members have shut down their stations and sent their workers away because we cannot no longer cope with the harsh business environment”, he added.

As the fuel scarcity persists, pump prices across Nigeria have seen a significant increase, particularly among independent marketers, compared to the relatively stable prices maintained by major marketers.

Surveys conducted in Lagos and Abuja reveal that while major marketers are selling fuel at an average of N605 per litre, independent marketers have adjusted their prices upwards, averaging N730 per litre.

In some extreme cases, prices have soared as high as N900 per litre on the outskirts of major cities.

The disparity in pricing between major and independent marketers has widened, with independent marketers attributing the escalating prices to a breakdown in the systems of the Nigeria National Petroleum Company Limited (NNPCL).

This breakdown has reportedly affected their direct access to imported fuel consignments at stipulated depot prices, giving major marketers an undue advantage.

Amidst these challenges, the black market thrives, with prices reaching as high as N1500 per litre, as long queues continue to frustrate motorists across urban centres.

On the other hand, the Major Energy Marketers Association of Nigeria (MEMAN) has managed to maintain a steadier supply and pricing strategy through collaborative efforts among its members, including product swaps and shared logistics, particularly in the Apapa hub.

“We share not just logistics but products. If I run dry in my depot, I can take from another MEMAN company depot and later give back what I took,” explained MEMAN’s CEO, Mr. Clement Isong.

Despite attempts to contact the NNPC for comments on the ongoing situation, responses were unavailable at the time of this report.