Fuel Scarcity: We Can’t Continue to Sell Petrol at N165 per Litre, Marketers Insist

Fuel Scarcity: We Can’t Continue to Sell Petrol at N165 per Litre, Marketers Insist

  • Fuel queues on Monday resurfaced in most parts of Lagos state following the decision of some members of the IPMAN to close down their operations
  • The Lagos zonal chairman of IPMAN, Akin Akinrinade explained in an interview that its members did not embark on strike but can’t continue to operate in a hostile setting
  • The petroleum marketers are however insisting on selling the premium motor spirit at N165 per litre

The Independent Petroleum Marketers Association of Nigeria (IPMAN) says its members can no longer sell premium motor spirit (PMS) at the regulated price due to a 'hostile' business environment, The Cable reports.

Through petrol subsidy, the government fixed the price of petrol for consumers below the international price.

Last week, the southwest zone of IPMAN threatened to direct its members to sell petrol at N180 per litre.

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IPMAN, fuel scarcity
Vehicles queue for fuel at FATGBEMS filling station in Berger along Lagos-Ibadan Expressway, 08 February 2022. Photo by Olukayode Jaiyeola/NurPhoto
Source: Getty Images

IPMAN Lagos chairman confirms the development

Confirming the development, Akin Akinrinade, chairman, Lagos satellite depot, in a media briefing in Lagos on Monday, June 20, said its members can no longer dispense petrol at filling stations below N180 per litre.

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He said:

“Our members can no longer sell at N165. In fact, there is no reasonable businessman in this business that can sell below N180 per litre.”

He said members of IPMAN shut down their stations "not because we are striking".

Mr Akinrinade affirmed:

“We are not on strike rather the business environment has been very hostile to us such that we can no longer do business under this condition.
“For you to load a litre of petrol, you will pay N162 per litre. You will have to add the cost of transportation which is between N6 to N8, depending on the distance within Lagos. If it is outside Lagos, it is much more than that.

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“So, If you add N8 to N162, you already have N170 and this product is regulated by the government and the government wants us to sell at N165. We have not added the charges at the depots and the running cost at our stations.”

The chairman noted that the cost of diesel amid the country’s epileptic electricity supply situation also affected its members’ running costs.

“You know what diesel says now, and you know how epileptic power supply is, we run on generators using diesel at N800 per litre,” he said.
“There is no station in Lagos or anywhere that uses less than 50 litres per day.”

Queues for petrol resurfaced in Lagos on Monday days after scarcity surfaced in Ibadan, Oyo state.

TheCable had reported that petrol scarcity would continue as available statistics showed the country is experiencing extreme low crude oil production.

Petrol marketers increase pump price amid scarcity

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Independent Petroleum Marketers Association of Nigeria (IPMAN) has increased the price of petrol despite the official price still fixed at N162.50 and N165 per litre.

According to the independent marketers, it would be difficult for them to sell at the official pump price.

As a result of this, they have started implementing a new price regime of between N170 to N190.

Fuel scarcity: Commuters stranded, motorists lament as long queues resurface in Lagos

Recall that Legit.ng reported that on Monday, June 20, long queues for Premium Motor Spirit (PMS), also known as petrol have resurfaced in filling stations across Lagos state.

This is coming two weeks after the long queues were first spotted in the Federal Capital Territory, Abuja, and neighbouring Nasarawa and Niger states, among others.

Meanwhile, President Muhammadu Buhari had approved an increase in the freight rate being paid to transporters of petroleum products in a bid to clear the persistent fuel queues by motorists in parts of the country.

Source: Legit.ng

Esther Odili avatar

Esther Odili (Politics and Current Affairs Editor) Esther Odili is a journalist and a Politics/Current Affairs Editor at Legit.ng with 6+ years of experience. Before joining Legit.ng, Esther has worked with other reputable media houses, such as the New Telegraph newspaper and Galaxy Television. She Holds OND and HND in Mass Communication from NIJ, where she was recognized as the best student in print journalism in 2018. Email: esther.odili@corp.legit.ng.

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