The Independent Petroleum Marketers Association of Nigeria (IPMAN), western zone, has attributed the increase in the pump price of fuel to the hike in private depot prices.

Dele Tajudeen, chairman, IPMAN western zone, while condemning the increase, said there had been an increase in depot price of fuel from N148.17 per litre to N178 per litre since last week.

According to him, none of the Nigerian National Petroleum Company Ltd. (NNPC) depots had the product, and the private depots took advantage of the situation to hike the price.

“The only option for our members is to opt for private depots to keep our business moving,” he said in an interview on Tuesday.

He added, “We are totally against the increase because it will affect our profit margins and the masses.”

Mr Tajudeen accused private depots of refusing to sell the products for “reasons best known to them.” 

The IPMAN chairman said the marketers should not be blamed for the increase in pump price, adding that “selling at N170 per litre is not realistic”.

“Therefore, our members have no other option than to sell between N195 and N200 per litre within Lagos, Ogun and Oyo state, while we will sell between N200 and N210 in Kwara, Ondo, Osun and Ekiti states.

“Most of the tank farm owners have justified this increase because of different charges, among which is vessels charges paid in dollars,” he said.

He urged the NNPC and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to investigate the price hike.

However, a top official of the Depot and Petroleum Marketers Association of Nigeria (DAPMAN), who preferred to be anonymous, said the scarcity was due to the shortfall in product allocation from the NNPC.

The source alleged that DAPPMA had many performance invoices with the Petroleum Products Marketing Company (PPMC), which were still awaiting cargo to get supplied.

According to the source, a large portion of product allocation was given to the Major Oil Marketers Association of Nigeria (MOMAN) because it is believed that they have a large reach of retail outlets.

“Ex-depot price has been between N162 and N163 per litre for marketers within Lagos and its environs, while between N164 and 165 for marketers outside Lagos like Calabar, Port Harcourt, Owerri and so on.

“Some foreign vessels that came into the country refused to discharge due to financial challenges.

“The shortfall in the product can best be explained by NNPC and its agencies,” he said. 

(NAN)