The Independent Petroleum Marketers Association of Nigeria (IPMAN) has blamed transportation ‘logistics’ for the disruption in supply, stressing that the problem was currently localised to Abuja and parts of the north due to the inability of fuel tankers to have unimpeded movement to the affected areas.
Recall that fuel queues have resurfaced in in Abuja and the adjoining states on Sunday with some filling stations dispensing PMS as high as N900/litre.
However, speaking on Arise TV programme, the IPMAN president, Abubakar Maigandi, said that although there was availability of the product, getting it to Abuja and surrounding states was becoming difficult.
He stressed that the hiccups experienced by drivers the previous week, due to bad road conditions were responsible for the scarcity in Abuja and a number of other states in the north.
His position also aligned with that earlier expressed by the Executive Secretary of the Major Energy Marketers Association (MEMAN), Clement Isong, who blamed the development on supply chain disruption.
He said the recent rainfall across the country, especially in Lagos, made it difficult for trucks to lift products, saying there was a thunderstorm at the depots.
Maigandi stated that ex-depot prices had also hit N715, compared to previously lower prices that IPMAN members bought the product.
“That is why you have been seeing that in Lagos there is no queue, it’s only in Abuja. And that one is because of the logistics challenges in terms of transportation from Lagos to Abuja,” Maigandi assured.
“The masses should not panic in buying because sometimes if there is any small distance, you will see people will start panicking. So actually there is product. What I mean by logistics problem here is that when we buy the products, we have to transport them from Lagos and it’s by road.
“So whenever there is a small cut-off, no matter how small it is, like in Abuja here, they must be affected because the consumption is so high,” Maigandi stressed.
He stated that although the roads are better now compared to the recent past, a lot of work still needed to be done.
Nigeria’s over 5,200 kilometres of pipelines are largely decrepit due to either old age or vandalism. Contrary to what happens in other parts of the world, Nigeria transports its petroleum products by tankers, which add to the cost of the product before getting to the pumps.
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“If these depot owners hike the price, we too, independent petroleum marketers we have no choice because we normally get almost 70 per cent of the product through them. So, we have to add a margin to see that we can be able to get a small profit.
“Like the private depot owners presently, they are selling this product at the rate of N715 in Lagos. So we marketers, when they buy this product at the rate of N715, we have to add our transportation cost. By the time you add the transportation cost, then you have to put a small margin and sell your product,” Maigandi stated.
According to him, negotiations are currently ongoing with the NNPC and Dangote refinery to get products directly from them instead of going through middlemen.
“We are still in contact with the Dangote refinery, right from the time he started selling this diesel. So actually what we told him is that we want to start buying directly from him, instead of telling our members to go and buy through the multinational companies or to buy through the private depots.
“So we have said that he should try and allocate certain product to us so that we can be able to buy directly because buying directly through him is just like getting a lower rate. So when we get a lower rate, then we discharge in our filling stations and sell at a lower rate to the masses,” he said.
