Independent oil marketers are advocating for direct supply of premium motor spirit (PMS) from the Nigerian National Petroleum Company Limited (NNPCL) as a means to alleviate the burden of high fuel prices on consumers.
Abubakar Maigandi, the National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), stressed the need for independent marketers to access PMS directly from NNPCL, highlighting the potential for reduced costs if this supply chain is established.
Maigandi revealed that the major challenge facing independent oil marketers is the lack of direct supply from NNPCL.
Currently, they purchase fuel from private depot owners at higher rates, which inevitably leads to inflated prices for consumers.
He explained that while NNPCL sells PMS to private depot owners at N557 per litre, independent marketers end up buying from third parties at N630 per litre.
These additional costs, including transportation and bank charges, contribute to the high retail prices faced by consumers, often exceeding N650 per litre.
The IPMAN president emphasized that if independent marketers could secure direct supply from NNPCL, they would be able to sell PMS at more affordable rates, potentially even below the NNPCL retail price.
He highlighted the significant market share held by independent marketers, covering 80% of retail outlets across Nigeria, and stressed the importance of their role in providing fuel to both urban and rural areas.
Maigandi stated that the association has raised its concerns with the Federal Government, urging authorities to address the challenges faced by independent marketers.
He emphasized that direct supply from NNPCL would not only benefit consumers by lowering fuel prices but also ensure fairer access to petroleum products across the country.
