Scarcity: Ibadan IPMAN chapter appeals to NNPC for steady petrol supply - Financial Daily News Site

Scarcity: Ibadan IPMAN chapter appeals to NNPC for steady petrol supply

The Independent Petroleum Marketers Association of Nigeria (IPMAN), Ibadan depot, has appealed to the Nigeria National Petroleum Company (NNPC) Limited to supply petrol to the state.

Petrol scarcity had hit Ibadan, the capital of Oyo state, on Thursday.

The situation has persisted as the price of the product stood between N180 and N187 per litre at some filling stations in the city, as of Friday morning.

Speaking with NAN on Friday, Bukola Mutiu, chairman, IPMAN Ibadan depot, said his members have been unable to buy fuel from the NNPC for the past five months.

According to him, the petrol scarcity currently experienced in Ibadan is caused by the inadequate supply of the product.

He further explained that his members had to patronise private depots in Lagos and Warri and incur extra costs of transporting the commodity.

This, he said, has prompted its members to increase fuel prices.

“We get our supply through NNPC and with the current situation, for about five months, going to six months now, we have no supply from Ibadan depot of NNPC,” Mutiu said.

“So, we have been going extra miles to get supply from the private depots in Lagos or Warri.

“And, for about two to three weeks now, we have had a short supply from the private depots also.

“So, last week, they started increasing the price of the product from the normal rate to abnormal rate.

“As at close of work on Thursday evening, we bought at a private depot without transportation cost at the rate of N158 per litre.

“If you now add transport cost and other costs such as logistics, the landing cost to Ibadan metropolis, it will be around N175 to N176 per litre.

“That is why most of our members that are lucky to get supply are selling around N180 per litre.”

The IPMAN chairman appealed to NNPC to step up efforts to increase fuel supply to the state.

“They are trying and we should commend them, because they are the sole importer of petroleum products into the country. But, they can still buckle up to do more,” he said.

“The solution is that the federal government should find a means of using their own personal and conventional depots.

“In the south-west, we have five depots and none of the depots is working in the last five years.

“Another thing is that, if the government can deregulate and do the needful, it will create a level playing field for any investor that wants to invest in importing and selling of these products.

“But, as of today, you cannot get forex to go and buy on your own; if you buy, it will be much higher than what we are selling.”

On the recent increase in freight rate, Mutiu said, “normally, the rate at which we pay to transport a truck of product from Lagos to Ibadan was N100, 000, but now, it has gone high to between N500, 000 and N600,000.

“So, it is one of the reasons why we increase our pump price.”

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