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“Marketers are suffocated by the N615 ex-depot price.”

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The Independent Petroleum Marketers Association of Nigeria (IPMAN) has raised the alarm that the businesses of its members are under jeopardy over the current ex-depot price. The Chairman, IPMAN, NNPC Depot, Ore Western Zone of Nigeria, Engineer Shina Amoo, in an interview with New Telegraph over the weekend, said the businesses of independent oil marketers were being suffocated as they buy fuel at N615 ex-depot price.

He explained that they also incurred nothing less than N15 per litre as transport cost, adding that this excluded other operational costs. He stated that many of them currently sell fuel at N630 per litre, adding that when they include the costs they incur, the pump price should be nothing less than N640. The oil marketing chief said pump price at some filling stations of the Nigerian National Petroleum Company Limited (NNPC Ltd) was about N580 while major marketers are between N590 and N600. He called on the government to make it possible for them to buy at the same ex-depot price as major oil marketers.

According to him, the official ex-depot price is N568. Amoo said: “We need to have the same government ex-depot price, the same thing as major marketers. We are buying N615 as ex-depot price from major marketers and we are selling N630 and transportation is N15. So we have not even added the cost of running the petrol stations like payment of staff, sanitation, powering of the filling station and other costs. You see that we are running at a loss. “If we want to sell at N640 to make up and major marketers are selling N590 or N600, what kind love would you have for independent marketers to buy from us at the rate of N640 when you can get it from NNPC at N580 and major marketers between N590 and N600? It appears that they are trying to excuse us from the business.

“We are buying up and down at a premium. The one I bought is N615 and transportation N15 to Ibadan, Akure is N20. There is no way I can compete with major marketers and NNPC Ltd.” He called on the government or NNPC Ltd to designate a depot for IPMAN members. He added that such would help them pay and load products easily and at a good rate, adding that it will facilitate easy distribution of the product. He also said that many depots of the government are moribund.

Amoo said: ““Unlike when we will be buying from the major marketers and getting If we can have a depot designated to IPMAN it will go a long way to address our challenges. Having a depot designated to IPMAN will help us to pay on time and load. “All the government depots in the country are all abandoned.” He assured that with the current stock of product in the country, there would be no scarcity of fuel during the Yuletide. He also said that there would be more availability of petroleum products in the country with domestic refining by Dangote Refinery and the government owned refineries. Amoo said: “There can not be scarcity. There is fuel every qwhere. Only that the government should allow us to make profit. We are not making any profit. We are even selling at a loss. Many of our marketers are closing down and it is not good for the government of the day. Since they came on board, people are leaving our business to do other things or run away.

“On Port Harcourt and Dangote refineries, since they said so, we are waiting, if they could be in operation, it will help us a lot. On the side of availability of the product. They should do their best to ensure that the refineries start domestic refining before the end of this year. If that happens, it will help us seriously by ensuring availability of the product, turnover, and pricing may go down a little bit. We will have more than enough for supply in the system.”.

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