Chronic Fuel Scarcity Coming, IPMAN Warns

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has sounded the alarm over a potential fuel scarcity across the country, citing unresolved issues with the Nigerian National Petroleum Company Limited (NNPCL).

Addressing journalists in Ilorin on Friday, IPMAN’s National Public Relations Officer, Alhaji Okanlawon Sulaiman Olanrewaju, warned that the rising costs of petroleum products, coupled with ongoing disputes between IPMAN and NNPCL, could lead to fuel scarcity nationwide.

According to Olanrewaju, NNPCL is selling fuel to independent marketers at a steep ₦1,010 per liter, a price significantly higher than what is available at NNPCL’s own retail outlets. This price disparity has placed undue pressure on independent marketers, who may be forced to halt operations once existing fuel stocks are depleted, leading to an impending fuel scarcity.

Olanrewaju further explained that IPMAN’s leadership has instructed its members to suspend operations temporarily, pending the resolution of the ongoing pricing dispute, which could lead to a halt in fuel distribution across the country.

“The current price NNPCL wants to impose on us is unsustainable,” Okanlawon remarked. “NNPCL is selling at ₦1,010 per liter to IPMAN, while their retail outlets sell at a lower price after accounting for transportation costs. This situation is unacceptable, and we cannot continue to operate under these conditions.”

Olanrewaju also criticized NNPCL for failing to deliver products despite payments made by marketers. “Our members have paid approximately ₦15 billion into NNPCL’s account for months now without receiving any product. This was for the old price of ₦750 per liter. Now, they are asking us to top up the payment before we can collect the product,” he added.

Highlighting the economic impact, Olanrewaju revealed that marketers rely on bank loans, which carry high-interest rates. This, combined with the inflated prices imposed by NNPCL, has created a financial burden that many marketers are struggling to bear.

“Many of us have taken loans from banks, and with interest rates skyrocketing, the situation is becoming untenable. We cannot continue operating in this manner without some form of relief,” he said.

While acknowledging the government’s steps toward full deregulation of the oil sector, Okanlawon stressed that the current system, where NNPCL acts as the sole off-taker from Dangote’s refinery, stifles competition and drives up prices. “If NNPCL opens up the market and allows competition, prices will drop. The current setup is not sustainable,” he argued.

IPMAN’s National Executive Council is set to meet next Wednesday to discuss the way forward, with many marketers refusing to make additional payments until a resolution is reached.

The looming fuel scarcity raises concerns about the potential for widespread disruption across the country, as IPMAN’s standoff with NNPCL remains unresolved.
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