Fuel Scarcity Looms as Independent Petroleum Marketers in The North Threaten to Shutdown Operations

Jul 30, 2023 | Uncategorized

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  • Independent Petroleum marketers in the North are threatening to shut down operations
  • The association said that the Nigerian Midstream and Downstream Regulatory Authority (NMDPRA) owes it N250 billion in bridging claims
  • They say the lack of funds is heavily affecting their operations in the region

According to Musa Yahya Musa Yahya, the Northern Petroleum Petroleum Marketers Forum (NIPMF) Chairman, the Nigerian Midstream and Downstream Regulatory Authority (NMDPRA) owes the association over N250 billion in bridging claims for 2022.

Yahya disclosed this during a meeting in Kano State, adding that failure to pay the debt will impact the distribution of petroleum products across the northern states.

Petrol, Northern marketers
Petrol marketers in the north to shut down operations
Credit: NurPhoto
Source: Getty Images

Marketers complain of lack of capacity to carry out distribution

He said that the Forum members can no longer afford to ferry petroleum products for sale to various outlets due to high operating costs.

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Reports say the Forum Secretary Jarma Mustapha said the Forum bridging claims are up to the day President Bola Tinubu announced the petrol subsidy removal.

Mustapha noted that the Forum members face difficulties, such as a lack of capacity and capital to continue business operations.

He said:

“Today, the capital you need to have one truck of the product before has multiplied by four to have the same number of trucks. Almost all of our members are going out of business.

“Based on that, we appeal to the President to intervene and talk to the authorities concerned to pay all our outstanding claims immediately.”

Bridging claims contributed by consumers

Mustapha stated that consumers contribute to bridging Claims and are collected by marketers and paid to NNPCL.

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However, NNPCL collects the claims and pays them into the Equalisation Fund.

He said:

“That money is not budgeted, which is financed by the government. The consumers fund it through the marketers to equalize prices nationwide.

“We will follow diplomatic means to access the fund, but we cannot guarantee that the diplomatic means will be sustainable. We don’t know how to control our members. It is incumbent on the government to look at the situation, consider our support for the deregulation policies, and do the needful.

“As businesspeople, we do not go on strike, but if the situation persists, we will just withdraw our services, which we do not pray for such to happen.”

Petrol price hike imminent as crude oil price rises to $84/barrel, Nigeria records 240 oil theft in one week

Legit.ng reported that the international benchmark for crude oil increased to a high of $84 per barrel on Wednesday, heightening speculations that Nigeria may see another petrol price increase in the coming weeks.

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Crude oil sale is a significant determinant of refined petroleum product prices. It hovered between $75 and $78 per barrel for over a month but peaked on Wednesday, July 26, 2023, rising to similar highs last week.

Oil marketers in Nigeria have revealed that the rise in crude oil prices and exchange rate increase might cause further hikes in petrol prices.

Source: Legit.ng



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