President Tinubu’s withdrawal of fuel subsidy payments has failed to achieve the intended goal of deregulation., according to the Independent Petroleum Marketers Association of Nigeria (IPMAN).
Members of the group protested in a statement on Sunday that the Nigerian National Petroleum Company Limited (NNPCL) has remained the country’s only importer of the product.
The NNPCL had pledged that oil marketers would be permitted to import petrol into the country at will, and that competition among oil marketers would gradually drive down the price of the product.
According to IPMAN’s National Vice President, Abubakar Maigandi, all three businesses that began the petrol importing operation in July had abandoned it less than two months later.
According to Maigandi, the naira’s volatility in the international market has made it nearly difficult for any oil marketer to consider importation.
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Even if any oil marketer was willing to take such a risk, Maigandi pointed out that they would be unable to obtain the required foreign exchange from banks.
“Up till now, only NNPCL can come with the PMS, marketers cannot buy the PMS because of the price and foreign exchange,” Maigandi said.
“Most of the marketers are not getting the foreign exchange from the banks. So, everybody relies on the product that NNPCL imports and shares to the marketers.”
Maigandi then accused NNPCL of hoarding products and refusing to sell to oil traders. Maigandi warned that NNPCL’s new strategy was leading to a monopoly.
“The way we used to load there is now reducing. From the loading point, NNPCL refused to give us allocation. They have reduced the way they had been given allocation to marketers,” he said.
Maigandi concluded by stating that, except NNPCL, every other oil depot has raised its ex-depot price. NNPCL, on the other hand, has refused to sell. “NNPCL is still selling at the same N567 rate in Lagos, but they will not allow marketers to buy.”
