The Nation Newspaper

Tag: Independent Petroleum Marketers Association of Nigeria (IPMAN)

  • Why kerosene is above pump price – IPMAN

    Why kerosene is above pump price – IPMAN

    …Lack of deregulation delays investment in refinery

     

    The National Vice President, Independent Petroleum Marketers Association of Nigeria (IPMAN), Alhaji Abubakar Maigandi Dankigari Wednesday explained that marketers were selling the Dual Purpose Kerosene (DPK) above pump price because they could not access it at the official pump price.

    He revealed that corrupt practices still characterized its sale because the product is still subsidized.

    According to him, the Petroleum Products Pricing Regulatory Agency (PPPRA) pegged the price of kerosene for N135 per litre but marketers could not get it directly at the price unless they cut-corner securing it at N160 or N170 per litre.

    He said the scenario was accountable for the sale of kerosene at N180 per litre.

    Speaking with The Nation at Abuja, he said: “Let government deregulate that PMS and DPK because there is still some element of corruption in the sale of kerosene. I seek the deregulation of the price of kerosene because of the difficulties in accessing it.

    “Masses are not enjoying it and we marketers are not enjoying it because even when you go to any government depot that you want to load DPK now, you cannot load it at the government stipulated rate until you give them money before you can load it. The government’s price is N135 but you cannot get it. You can only come to town and get it for N160 and N170. That is why you see marketers selling it at N180 per liter.”

    Dankigari noted that IPMAN was yet to kick-start the building of its proposed modular refineries because the Federal Government was yet to deregulate the price.

    He noted that had government deregulated the prices of the Premium Motor Spirit (PMS) and Dual Purpose Kerosene (DPK) as IPMAN would have approached its foreign partners for investment in the projects.

    According to him, building modular refineries is a gigantic project that an individual could hardly undertake without the involvement of foreign investors.

    He said: “Up to the present date, the PMS and DPK are not completely deregulated. And a project like this an individual cannot sponsor it. We will have to bring in foreign investors. And supposing the DPK and PMS are completely deregulated our foreign investors are ready to bring the money so that we can continue the business.”

    Dankigari, who urged the government to deregulate the pump prices of petrol and kerosene, noted that its members cannot import the products because of the devaluation of Naira which affected access to foreign exchange.

    Citing an example of the benefits of full deregulation, he explained that marketers were importing diesel because government had deregulated the product.

    He said: “We are importing diesel. What we are not importing is kerosene and DPK because of the present change in the value of Naira to dollar. We cannot go and import because of the rate. The government rate of kerosene is N145 per liter and PMS the government rate is N145. We can import diesel because of the liberalization.

    “There is no subsidy in diesel therefore if you import, you can add your margin and sell. The market of diesel is good as most of our marketers are selling it in their pump at the rate of N180 to N190 per litre.”

    The National Vice Chairman said that the people can now access petrol because of the removal of subsidy which brought the pump price to N145 per liter.

    He said the forces of demand and supply have reduced the PMS price in most independent petrol stations across the country.

    His words: “The sale of PMS is good because there is availability of diesel, PMS and DPK. Since there is availability of products our staff are busy selling ice. A.A. Rano is selling at the rate of N141, Garima in Kubwa we selling at the rate of N142, Azman and the rest of them are selling at the rate of N142.”

    Continuing, he said: “We thank God that some government refineries have started functioning. Port Harcourt and Kaduna Refineries are now functioning. So they are assisting in terms of supply.”

  • Group lauds IPMAN’s plan to build new refineries

     

     

    The South East Renaissance Group has commended the plan by members of the Independent Petroleum Marketers Association of Nigeria (IPMAN) to build new refineries, describing it as a visionary step towards ending the perennial scarcity of petroleum products in the country.

    President of the group and former Commissioner for Information and Strategy in Imo State, Nze Elvis Agukwe, assured that the new leadership of IPMAN under Chief Lawson Obasi will surely stabilize the distribution of products and end scarcity.

    Agukwe who regretted that endless crisis prevented IPMAN from playing its expected role, expressed confidence that the new leadership under Chief Obasi will take charge of the situation.

    According to him, “with Chief Lawson Obasi as the new IPMAN President, the much needed stability in the downstream sector is now here and Nigerians will no longer groan under any form of fuel scarcity”.

    He also expressed optimism that the plan by IPMAN to build refineries will go a long way to stop the import of the products, thereby saving the nation the much needed foreign exchange.

    “This is a master-stroke of walking the talk. I am not surprised at all because Chief Lawson Obasi is not only a key player in that sector but he commands the respect of his members. His presidency of IPMAN will surely benefit the nation”, Agukwe said.

    He further urged the Federal Government, especially the Ministry of Petroleum Resources and NNPC, to work in concert with IPMAN to realize its dreams for Nigeria.

    “The Petroleum Ministry and NNPC should pay more attention to the needs of IPMAN rather than the undue favour it grants the oil majors, many of whom are not Nigerians,” he stated.

    The former commissioner noted that IPMAN was employing millions of Nigerians and contributing to the growth of the economy and hence should be supported through favourable government’s policies.

    Agukwe described the new IPMAN President, Chief Lawson Obasi as a man of ideas with proven leadership qualities who will assist the government achieve its goals to stabilize the oil sector.

    “For us as the South East Renaissance Group, the emergence of Chief Lawson Obasi as IPMAN President could not have come at a better time. With him in the saddle, the era of long queues in petrol stations will be over. We congratulate him and wish IPMAN well for this wise choice,” he submitted.

  • IPMAN raises alarm as banks threaten to take over stations

    IPMAN raises alarm as banks threaten to take over stations

    • Says NNPC holds down over N60b petrol tickets for two years

    The Independent Petroleum Marketers Association of Nigeria (IPMAN) on Friday cried out over the imminent move of some commercial banks to take over some petrol stations following their loan repayment defaults.

    According to its Vice President, Alhaji Abubakar Maigandi Dankigari, who disclosed this to The Nation at Abuja, the marketers could not service their loans because the Nigerian National Petroleum Corporation (NNPC) has refused to supply their over N60 billion petrol tickets since two years ago.

    He revealed that instead of loading whatever volume of petrol the over N60 billion can buy at the new pump price, the NNPC is requesting them to pay the balance before providing the products.

    He added that it is even now cheaper to buy petrol from independent depots than NNPC, which has used the ploy to tie down their fund.

    The Vice President noted that the marketers know that even after paying the balance that NNPC is requesting for, it will still take a very long time for them to get the products, hence they have resorted to patronize the private depots.

    This, he said, has made it impossible for the marketers to repay of servicing loans.

    However, all efforts by The Nation to contact the NNPC Group General Manager, Group Public Affairs Division, Malam Garba Deen Muhammad for the corporation’s side of the story, proved abortive as no reply was given to all messages put forward.

    Meanwhile, Dankigari maintained: “The implication is so high because we borrow most of the money from the bank. Automatically if NNPC refuses to load, you will find out that some of our marketers will lose their filling stations.

    “Already the banks are in courts with some of the filling stations because they failed to repay the banks. So, I am advising the NNPC to try as much as possible to load the product to the marketers so that the marketers don’t lose their filling stations. And you know that losing their filling stations means a creation of another unemployment.”

    Suggesting what NNPC should do in the situation, he advised that it should either refund the money to the marketers or sell what their outstanding N60 billion can buy to them.

    The Vice President added that it would be better for them to recover the over N60 billion from NNPC and buy from the private depots.

    He lamented about the rate at which the corporation sells petrol to the independent marketers, stressing that NNPC now sells the product at a higher rate than private depots.

    His words: “And then secondly in terms of the rate, NNPC is selling the product to the marketers at the rate of N133.28k per litre while the private depots are selling this product at the rate of N128 per litre.

    “And this same NNPC when you buy N133.28 from them, they will come to their filling stations and be selling this product at the rate of N135 per litre. So where do you expect the marketers to make their profit?

    “So it will be better for NNPC to refund our money so that we can buy from the private depots.

    But now our money is with them and whether you like it or not you must bring your money and that is the reason they are selling it at a higher rate to us and it is affecting our business.

    “And even if you complete the balance, they will create a delay tactic -before you load it will take a very long time. And that is why you see some of the marketers now abandon the NNPC tickets and they are buying from the private depots. Because they know that even after paying the balance that NNPC is asking for it is going to take a very long time for them (marketers) to get their products.”