Fuel Scarcity: Depot And Marketers Association Exposes NNPC's Lies
The Depot and Petroleum Products Marketers Association (DAPPMA) has claimed that the Nigerian National Petroleum Corporation (NNPC) lied to Nigerians on the ongoing nationwide shortage of Premium Motor Spirit (PMS) or petrol.
The Depot and Petroleum Products Marketers Association (DAPPMA) has claimed that the Nigerian National Petroleum Corporation (NNPC) lied to Nigerians on the ongoing nationwide shortage of Premium Motor Spirit (PMS) or petrol.
DAPPMA made the claim in a statement issued on Monday. Signed by its Executive Secretary, Mr. Olufemi Adewole, the statement rejected accusations of product hoarding leveled against DAPPMA members.
While DAPPMA explained that it can neither confirm nor dispute NNPC's claim of having sufficient product stock, the association said it can confirm that the products are not in the tanks of its members.
According to DAPPMA, there are always hitches in product distribution any time the NNPC assumes the role of sole importer of products. DAPPMA added that 80 percent of the country's functional product receptive facilities are owned by its members and such do not currently hold products.
"The NNPC imports and distributes products through DAPPMA, Major Oil Marketers Association of Nigeria (MOMAN) and Independent Petroleum Marketers Association of Nigeria (IPMAN). Our members pay NNPC/PPMC (Petroleum Products Marketing Corporation) in advance for petroleum products and fully paid up PMS orders that have neither been programmed nor loaded are in excess of 500,000 metric tonnes (about 800,000 liters) as at today and enough to meet the nation's needs at a daily estimated consumption of 35,000 liters.
Our members' depots are presently empty. However, if the NNPC /PPMC provides us with PMS, we are ready to do 24 hours loading/truck out to alleviate the suffering of Nigerians until the fuel queues are eliminated," said DAPPMA. The association maintained that the NNPC has been the sole importer of the product since October for various reasons.
Among these, DAPPMA said, is the fact that the country currently runs a fixed price regime without any recourse to subsidy claims. It noted, however, that the international price of crude oil is beyond its control. DAPPMA stated that the current price of PMS is about N170 per liter, with the NNPC, importer of last resort, absorbing the attendant subsidy on behalf of the Federal Government.
"We understand that NNPC meets this demand largely through its DSDP platform framework. However, due to price challenges on the DSDP platform, some participants in the scheme failed to meet their supply quota of refined petroleum products, especially PMS, to NNPC. This is the main reason for this scarcity," explained DAPPMA.
It added that the current exchange rate of naira to the dollar is N306 for PMS importation, stating that banks also charge interest at a rate above 25 percent.
DAPPMA's Response To Fuel Scarcity
It further stated that this situation puts the landing cost of PMS at N145 per liter, which requires any of its members that imports would have to resort to subsidy claims, a policy already abolished by the Federal Government.
Our depots are empty, petroleum marketers association says
The Depot and Petroleum Products Marketers Association (DAPPMA) on Tuesday expressed concern over the inability of Nigerian National Petroleum Corporation (NNPC) to send petrol to its members’ depots. DAPPMA’s Executive Secretary, Mr Olufemi Adewole, in a statement in Lagos, urged NNPC to help the Association so as to alleviate the suffering of Nigerians. “Our members’ depots are presently empty. However, if the PPMC/NNPC can provide us with petrol, we are ready to do 24-hour loading to alleviate the sufferings of Nigerians and for the fuel queues to be totally eliminated. “We, petroleum products marketers, do empathise with all Nigerians who are going through difficulties at this time by spending hours on fuel queues because of the current fuel scarcity due to no fault of theirs. “DAPPMA members import about 65 per cent of the nation’s total fuel consumption, Major Oil Marketers Association of Nigeria (MOMAN) imports about 15 per cent and PPMC/NNPC import the balance of 20 per cent. “However this scenario changed drastically due to several challenges faced by marketers," he said. The DAPPMA official claimed that their members pay PPMC/NNPC in advance for petroleum products. He said fully paid-up petrol orders which have neither been programmed nor loaded is in excess of 500,000MT (about 800,000,000 litres). “As at today, there is enough petrol to meet the nation’s needs for 19 days at a daily estimated consumption of 35,000,000 litres. “Sadly, some people have blamed marketers for hoarding products. Unfortunately, this is far from the truth. “Hoarding is regarded as economic sabotage and we assure all Nigerians that our members are not involved in such illicit act. “While all kinds of allegations have been made in the media, it is important to set the records straight, as Nigerians first, and as responsible business men and women who employ Nigerians. “As it stands today, NNPC has been the sole importer of PMS into the country since October,’’ Adewole said.
The Depot and Petroleum Products Marketers Association (DAPPMA) has claimed that the Nigerian National Petroleum Corporation (NNPC) lied to Nigerians on the ongoing nationwide shortage of Premium Motor Spirit (PMS) or petrol.
The Depot and Petroleum Products Marketers Association (DAPPMA) has claimed that the Nigerian National Petroleum Corporation (NNPC) lied to Nigerians on the ongoing nationwide shortage of Premium Motor Spirit (PMS) or petrol.
DAPPMA made the claim in a statement issued on Monday. Signed by its Executive Secretary, Mr. Olufemi Adewole, the statement rejected accusations of product hoarding leveled against DAPPMA members.
While DAPPMA explained that it can neither confirm nor dispute NNPC's claim of having sufficient product stock, the association said it can confirm that the products are not in the tanks of its members.
According to DAPPMA, there are always hitches in product distribution any time the NNPC assumes the role of sole importer of products. DAPPMA added that 80 percent of the country's functional product receptive facilities are owned by its members and such do not currently hold products.
"The NNPC imports and distributes products through DAPPMA, Major Oil Marketers Association of Nigeria (MOMAN) and Independent Petroleum Marketers Association of Nigeria (IPMAN). Our members pay NNPC/PPMC (Petroleum Products Marketing Corporation) in advance for petroleum products and fully paid up PMS orders that have neither been programmed nor loaded are in excess of 500,000 metric tonnes (about 800,000 liters) as at today and enough to meet the nation's needs at a daily estimated consumption of 35,000 liters.
Our members' depots are presently empty. However, if the NNPC /PPMC provides us with PMS, we are ready to do 24 hours loading/truck out to alleviate the suffering of Nigerians until the fuel queues are eliminated," said DAPPMA. The association maintained that the NNPC has been the sole importer of the product since October for various reasons.
Among these, DAPPMA said, is the fact that the country currently runs a fixed price regime without any recourse to subsidy claims. It noted, however, that the international price of crude oil is beyond its control. DAPPMA stated that the current price of PMS is about N170 per liter, with the NNPC, importer of last resort, absorbing the attendant subsidy on behalf of the Federal Government.
"We understand that NNPC meets this demand largely through its DSDP platform framework. However, due to price challenges on the DSDP platform, some participants in the scheme failed to meet their supply quota of refined petroleum products, especially PMS, to NNPC. This is the main reason for this scarcity," explained DAPPMA.
It added that the current exchange rate of naira to the dollar is N306 for PMS importation, stating that banks also charge interest at a rate above 25 percent.
DAPPMA's Response To Fuel Scarcity
It further stated that this situation puts the landing cost of PMS at N145 per liter, which requires any of its members that imports would have to resort to subsidy claims, a policy already abolished by the Federal Government.
Our depots are empty, petroleum marketers association says
The Depot and Petroleum Products Marketers Association (DAPPMA) on Tuesday expressed concern over the inability of Nigerian National Petroleum Corporation (NNPC) to send petrol to its members’ depots. DAPPMA’s Executive Secretary, Mr Olufemi Adewole, in a statement in Lagos, urged NNPC to help the Association so as to alleviate the suffering of Nigerians. “Our members’ depots are presently empty. However, if the PPMC/NNPC can provide us with petrol, we are ready to do 24-hour loading to alleviate the sufferings of Nigerians and for the fuel queues to be totally eliminated. “We, petroleum products marketers, do empathise with all Nigerians who are going through difficulties at this time by spending hours on fuel queues because of the current fuel scarcity due to no fault of theirs. “DAPPMA members import about 65 per cent of the nation’s total fuel consumption, Major Oil Marketers Association of Nigeria (MOMAN) imports about 15 per cent and PPMC/NNPC import the balance of 20 per cent. “However this scenario changed drastically due to several challenges faced by marketers," he said. The DAPPMA official claimed that their members pay PPMC/NNPC in advance for petroleum products. He said fully paid-up petrol orders which have neither been programmed nor loaded is in excess of 500,000MT (about 800,000,000 litres). “As at today, there is enough petrol to meet the nation’s needs for 19 days at a daily estimated consumption of 35,000,000 litres. “Sadly, some people have blamed marketers for hoarding products. Unfortunately, this is far from the truth. “Hoarding is regarded as economic sabotage and we assure all Nigerians that our members are not involved in such illicit act. “While all kinds of allegations have been made in the media, it is important to set the records straight, as Nigerians first, and as responsible business men and women who employ Nigerians. “As it stands today, NNPC has been the sole importer of PMS into the country since October,’’ Adewole said.
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