The Federal Government has resolved the disagreement between the Nigerian National Petroleum Company Limited, NNPCL, and independent marketers over a N15 billion claim by the latter, which has resulted in petrol supply gaps.
The resolution of the disagreement, through the intervention of the Department of State Services, DSS, has given rise to a seamless supply of the product to marketers by Dangote Refinery.
Recall that the marketers had paid NNPCL to lift the product from Dangote Refinery before the full deregulation of petrol but failed to get supplies because of price differentials caused by an increase in the product’s price.
While NNPCL insisted that the marketers pay the price difference to get the product, the marketers, on the other hand, said they would not pay, since the NNPCL tied down their money over three months without interest.
This culminated in the dispute that scuttled the lifting and delivery of the NNPCL’s petrol from the Dangote refinery for weeks and consequently, many independents shut their filling stations, resulting in a supply shortage.
IPMAN’s President, Alhaji Maigandi Shettima, lamented: “Our money is already with NNPCL. It has refused to give us the product we paid for and is asking us to complete the difference.
“Our money has been with NNPCL for almost three months now. It’s either they sell to us at the same rate they are getting the product from Dangote Refinery or refund our money, so we can buy directly from Dangote Refinery.”
The Public Relations Officer, IPMAN, Chief Chinedu Ukadike, said the money had now been refunded to individual marketers’ wallets in the NNPCL portal.
‘NMDPRA agrees to pay N10bn debt’
Ukadike disclosed that the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, had also agreed to pay independent marketers N10 billion owed them from the petrol bridging fund.
He said: “We went to a meeting with the Director of the DSS who intervened in the matter, and the outcome of the meeting is that NMDPRA has agreed to issue us licences, one, to off-take from Dangote and two, to import petrol.
“Three, the Director of NMDPRA has graciously approved N10 billion for IPMAN’s outstanding payments in PEF (Petroleum Equalisation Fund). Four, NNPC Limited has also agreed to reduce the rate it sells to us from N1,040 per litre to about N1,000.
“They have also agreed to return our outstanding money we paid to them through their portal so that marketers can make it up.
“These are the things agreed on and we are awaiting implementation. But as I speak with you, NNPCL has returned money to individual independent marketer’s wallets.”
He explained that the outstanding had been paid to each marketer according to what they paid to NNPCL “but I know that the money (total sum) is over N15 billion and this has been returned.”
Ukadike explained that independent marketers were expecting to meet officials of Dangote Refinery where pricing templates and loading arrangements would be agreed upon.
We didn’t deal with IPMAN — Source
However, the Chief Corporate Communications Officer, NNPCL, Olufemi Soneye, could not be reached, yesterday.
But an industry source said: “NNPCL did not deal with IPMAN. The company has a business relationship with many independent oil marketers. It is wrong for them to act as if the company has a business relationship with the association.
“Also, the rule is very clear, in case of change in price, marketers are expected to write for a refund, which would be granted. It is wrong for IPMAN to conduct itself as if the NNPCL is now dealing with it on behalf of its members.
Delay to impact the domestic market
Commenting on the development, the chief executive of a marketing company, who pleaded to be anonymous, said: “The planned negotiation is a step in the right direction. But it should be noted that undue delay could further worsen the current disruption of supply to the filling stations.
“The independent oil marketers control many filling stations in different parts of Nigeria. As a result of many problems, especially a lack of steady supply, they have not been able to lift the product to their stations for months.
“So, further delay because of negotiations with the Dangote refinery would widen the supply gap, while impacting the domestic market negatively.”
Many outlets are still shut
While some NNPCL and major oil marketers had huge stocks of the product, their independent counterparts did not have the product.
This was evident as their outlets remained closed in Lagos, Abuja and other parts of the nation yesterday.
Experts call for instant resolution of pricing, others
Reacting to the present development yesterday, the National President, Oil and Gas Services Providers Association of Nigeria, OGSPAN, Mazi Colman Obasi, said: “The downstream sector is very strategic, not only to the oil and gas industry but also the nation’s economy.
“It is important to tackle all issues that hinder the free flow of petrol from the Dangote refinery to the filling stations as soon as possible.
“As a leading oil producer in Africa, Nigeria should ordinarily not be exposed to any form of energy insecurity. With the much-expected deregulation of the sector, we need to remove all hurdles and ensure the product gets to filling stations without further delay.”
Consumers should shift to alternatives — 11 Plc
However, the Managing Director of 11Plc, Adetunji Oyebanji, called on consumers, including motorists, to shift to alternatives.
In an interview with Vanguard yesterday, Oyebanji said: “Customers will make informed choices about where to buy from. Operators will need to improve on safety, customer service and accurate measurement to retain customers.
“This is also the time for consumers to consider alternative sources of powering their vehicles, such as compressed natural gas, CNG. The era of full competition has come to Nigeria.
‘’With time, things will stabilise, and people will make informed choices. The government should invest in mass transportation, especially with CNG buses.
“Greater incentives should be given in terms of duty waivers on conversion kits and other CNG equipment and vehicles.