IPMAN Hints on Impending Fuel Scarcity, Call For Payment of Outstanding Claims

Barely a week after the Airline Operators in Nigeria cancelled their planned strike, the Independent Petroleum Marketers Association of Nigeria (IPMAN) has warned the Federal government and Nigerians as a whole of expected fuel scarcity, the worst of its kind.

Investors King recalls that the House of Representatives had ordered the NNPC to supply airline operators through their marketer of choice with six million litres of Jet A1, following the latter’s decision to embark on strike action.

However, there was a twist of events on Monday, as the IPMAN also hinted on an impending fuel scarcity. The association’s chairman, Bashir Danmalam made this disclosure during a press conference held in Kano on Monday.

While lamenting the plight of its members, the chairman stated that the Nigerian Midstream and Downstream Petroleum Regulatory Authority must pay the claims it owed the association for over eight months.

“For failure of the NMDPRA to pay the outstanding claims for about nine months, many marketers cannot transport the product because their funds are not being paid. Despite the high price of diesel, they manage to supply petroleum products nationwide.

“NMDPRA is responsible for the payment of bridging claims otherwise known as transportation claims”, he said.

According to Danmalam, only five per cent out of 100 per cent of its members can only supply fuel across the country due to this non-payment.

“As leaders, we have to come out to say the truth because our members are suffering from the failure of the agency to pay the fund. This Petroleum Equalisation Fund is our own money we contribute to each litre. This agency is doing more harm than good to us,” Danmalam added.

He claimed that after the amalgamation of DPR, PEF, and PPRA to NMDPRA, the agency had paid them only two times.

He, therefore, advised that Nigerians should not blame their members for the fuel scarcity but rather ascribe it to NMDPRA.

“We are not agitating for a transportation fee increase, we are only clamouring for payment of our bridging claims that is over N500 billion,” he said.

While beckoning on the Federal Government to effect a lasting solution to avert the looming danger, Danmalam stated that the long queues being experienced across the FCT are only a “tip of an iceberg.”

Is the foreign exchange rate the major cause?

The governor of the Central Bank of Nigeria, Godwin Emefiele noted that the apex bank does not have any authority over the instability of the dollar rise against the Naira, nor can it control the flow.

The Naira to Dollar exchange rate rose to almost N600 at peer to peer market, according earlier report published by Investors King.