Latest Stock Market News

NNPC Has Fuel In Stock, Dollar Scarcity Behind Price Hike – IPMAN, Esele – Channels

IPMAN President, Chinedu Okoronkwo appeared on Channels Television’s Politics Today on Tuesday, November 29, 2022.


Amid the resurgence of queues at filling stations across the country, the Independent Petroleum Marketers Association of Nigeria (IPMAN) says the Nigerian National Petroleum Company Limited (NNPC) has a sufficient supply of petroleum products.

IPMAN President, Chinedu Okoronkwo, who made a live appearance on Channels Television’s Politics Today on Tuesday, explained that the reason for the seeming scarcity of petroleum products had to do with distribution challenges.

According to him, petroleum marketers are expected to get the products from tank farm owners at N148.19 per litre. However, he said, they now receive the products at N185-N210.

READ ALSO: N186bn Oil Derivation Backlog Received So Far – Akwa Ibom Govt

“Their excuse will be that they hired vessels to take it from the mother vessel, pay all these charges, and some of these things are dollarised, so you have no choice. I think we can come (together) as a country to see how we put some of these dollarisation things, use naira and pay some of these things,” Okoronkwo said.

“Those who have the muscle and everything to buy will buy. No, this product is there. It’s because of what I’ve just said. NNPC has enough stock but (it is) because of this distribution thing; that is where we need to do something.

“IPMAN has about five zones. You can (deposit) some of these products in various zones so that their accessibility will still be at a cost that is not even that big. We are ready to chip in something to cushion some of these things so that we can still remain within the margin. I think that is the way to go.”

Similarly, former President of the Trade Union Congress (TUC), Peter Esele attributed the long queues to an ongoing issue of distribution and pricing.

Esele noted that though NNPC has enough products on the ground, tank owners have to use “daughter vessels” to get the refined products from the sea to their tanks, a task that supposedly leads to rising costs.

“Hiring a vessel is not in naira; it’s done in dollars. These tank farm owners need to source for those dollars in the parallel market. And you and I know what has been happening in the parallel market in the last month where you’ve had price fluctuations.

“What you have is the tank farm owners are now saying they need to get value for their money. They can’t now go ahead to be selling at a loss.

“So, the minimum for which you can get a product from a tank farm now is between N200 and N215. If somebody wants to sell a product between N200 and N215, how will the retailers now sell at N175? That’s a fundamental challenge,” he said.

Read More: NNPC Has Fuel In Stock, Dollar Scarcity Behind Price Hike – IPMAN, Esele – Channels

You might also like