DAPPMA exposes why fuel scarcity won’t end soon, blames NNPC




File copy of a fuel queue

The Depot and Petroleum Products Marketers Association,DAPPMA, has exposed the reason behind the lingering fuel scarcity in Nigeria.The group  has also placed the blame squarely at the doorsteps of  NNPC.

According to a statement by Olufemi A.Adewole,Executive Secretary, DAPPMA signed on Christmas day,”Current import price of petrol is about N170 /ltr.NNPC which absorbs  the attendant subsidy on behalf of the Federal Government is the importer of last resort.

“We understand that the NNPC meets this demand largely through its DSDP framework; however due to the price challenges on the DSDP platform,some participants in the scheme failed to meet their supply quota of refined petroleum product,especially PMS, to NNPC.This is the main reason for this scarcity.

Also DAPPMA said, “It is on record  that  any time NNPC assume the role of sole importer, there are issues of distribution ,because it is marketers who own  80% of the functional receptive facilities  and retail outlets in Nigeria

It  also  hinted that  the scarcity will not end soon  saying, “While we  cannot confirm or dispute  NNPC’s claim of having sufficient product stock,we can confirm  that the products are not in our tanks and as such cannot be distributed. If the products are offshore, then surely, it cannot be considered to be available to Nigerians.

READ ALSO:   NNPC to transport petroleum products to Northwest via system 2B pipeline

The full text of  DAPPMA’s statement  reads thus: “We Petroleum Products Marketers do empathize with all Nigerians who are going through difficulties  at this time spending hours  on fuel queues because of the current fuel scarcity due to no fault of yours.

“Historically, DAPPMA members imported about 65% of the nation’s total fuel consumption, Major Oil Marketers Association of Nigeria (MOMAN) imports about 15 per cent and PPMC/NNPC import the balance of 20 per cent.

“However this scenario changed drastically due to several challenges faced by marketers.”

“Sadly, some people have blamed marketers for hoarding products. Unfortunately, this is far from the truth.

“Hoarding is regarded as economic sabotage and we assure all Nigerians that our members are not involved in such illicit act.

“While all kinds of allegations have been made in the media, it is important to set the records straight, as Nigerians first, and as responsible business men and women who employ Nigerians.

“As it stands today, NNPC has been the sole importer of PMS into the country since October due  to  the following reasons:

“ We all know that we  presently run a fixed price regime of N145 per litre for PMS or petrol without any recourse  to subsidy claims.However,we als have no control on the international price of crude oil.

READ ALSO:   2019 Budget: NNPC assures of 2.3Million barrels per day crude oil production

“Current import price of petrol is about N170 /ltr.NNPC which absorbs  the attendant subsidy on behalf of the Federal Government is the importer of last resort.

“We understand that the NNPC meets this demand largely through its DSDP framework; however due to the price challenges on the DSDP platform,some participants in the scheme failed to meet their supply quota of refined petroleum product,especially PMS, to NNPC.This is the main reason for this scarcity.

“The international price of PMS went up during the hurricane Katrina and has not dropped  below USD600/MT

“Exchange rate f USD to the Naira is N306 for PMS imports  and also interest rate our banks charge is above 25%

“Landing  cost of PMS in Nigeria based  the scenario (listed above) is above N145/ltr which means  any of our members that imports would have to resort to subsidy claims, a policy already  jettisoned by  the Federal Government.

“It is on record  that  any time NNPC assume the role of sole importer, there are issues of distribution ,because it is marketers who own  80% of the functional receptive facilities  and retail outlets in Nigeria

READ ALSO:   2019 Budget: NNPC assures of 2.3Million barrels per day crude oil production

“While we  cannot confirm or dispute  NNPC’s claim of having sufficient product stock,we can confirm  that the products are not in our tanks and as such cannot be distributed. If the products are offshore, then surely, it cannot be considered to be available to Nigerians.

“NNPC imports and distributes  through Depot and Petroleum Products Marketers Association ;DAPPMA, Major Oil Marketers Association of Nigeria;MOMAN and Independent  Petroleum Marketers Association of Nigeria;IPMAN.Our members pay PPMC.NNPC in advance  for petroleum products  and  fully paid up PMS orders  that have neither  been programmed  nr loaded is in excess of 500,000MT(about 800,000,000 litres) as at today and enough to meet the nation’s needs for 19 days at a daily estimated consumption of  35,00,000 litres.

“Our members’ depots are presently empty. However, if the PPMC/NNPC can provide us with PMS, we are ready to do 24-hour loading/truck out to alleviate the sufferings of Nigerians and for the fuel queues to be totally eliminated.

“Fuel marketer remain committed to the progress of the nation and its citizenry as therein lies our own profitability and fulfilment”

 




Be the first to comment

Leave a Reply