Against the current rage and rumours of scarcity of fuel in the nation, the chairman of IPMAN Hhas decried the allegation of fuel subsidy that there’s fuel scarcity in the nation.
The National President of IPMAN, Chief Chinedu Okoronkwo, also confirmed the fuel scarcity was created by rumours. He said: “There was no need for panicking over fuel scarcity as virtually all the NNPC depots across the federation had fuel and were loading product to marketers.
Marketers are currently loading petrol in Makurdi, Kano, Enugu, Aba, Yola, Suleja, Kaduna, Ejigbo, Mosinmi, Ibadan and other depots across the country. The shortfall in distribution was due to the slow pace of product importation and hitches at the jetty,
which had been addressed. But the Federal Government is on top of the situation, there is enough petrol to go round. I have also instructed all our members to ensure adequate distribution of the product across the country.
“I have also directed them to ensure the product is sold at the official price of N145 per litre. If there are any issues on distribution and pricing differentials, members should call the secretariat for further action.
The Petroleum Products Pricing Regulatory Agency’s (PPPRA) template has not changed, so no marketer should influence hike or sell above official price.”
Okoronkwo restated IPMAN’s commitment to supporting the Federal Government’s efforts on effective and efficient distribution of petroleum products across the country,
adding that the Association had reached an agreement with other marketers for better synergy in making the product available in the country. “IPMAN which controls 80 per cent outlets has more advantage in distributing and dispensing in both urban and hinterlands in the country.
In line with the Federal Government’s efforts at ensuring efficient petroleum products distributed across the country, IPMAN members have opted for seamless distribution of petroleum products,” he said.
The Executive Secretary, Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN,) said that NNPC distribution pricing had been a major issue for depot owners, adding that for now, no members had product in his facilities.
Adewole said the price at which NNPC gives their members product and other charges make it extremely difficult for them to sell at regulated depot price.
“It’s not profitable because we are getting it between N139 and N140 per litre with other additional charges, therefore, at what price do we sell it?
“NNPC has the product but with the price the corporation gives us in addition to other costs incurred such as the cost of hiring a vessel, it will be on the high side and we have informed them (NNPC) but nothing was done.
We asked them to give us credit facilities as it does to MOMAN but they refused. The differences in pricing have been the issues.
“We have advised them to give us credit facilities and remove the finance cost as it is done to MOMAN. They (NNPC) should remove the freight cost but they have not done that. So, for now, DAPPMAN members don’t have products,” he said.
The Nigerian National Petroleum Corporation debunked the rumours of the impending scarcity early enough. The spokesman of NNPC, Ndu Ughamadu, disowned rumours of alleged refusal of some oil marketers to lift products from the depots, which would result in fuel scarcity.
Ughamadu said the NNPC had over one billion litres of fuel in stock. “NNPC has once again appealed to Nigerians to disregard trending social media report of an impending fuel scarcity due to the purported refusal by some oil marketers to lift products from depots.
He explained that the tale was fabricated by mischief makers with intent to create undue panic in the prevailing sanity in the fuel supply and distribution matrix across the country.
NNPC has over one billion litres of petrol in stock while imports of 48 vessels of 50million litres each have been committed for April 2019 alone, he said, adding that there was no need for panic buying or hoarding of petroleum products in anticipation of a phantom scarcity.
Lagarde who addressed the press at the ongoing spring meetings of the International Monetary Fund and World Bank Group, in the United States, said such money could have been spent on health and education. She advised Nigeria and other countries to stop fuel subsidy.
She said: “We believe that removing fuel subsidies is the right way to go. If you look at our numbers from 2015, it is no less than about $5.2 trillion that is spent on fuel subsidies and the consequences thereof.
And the fiscal affairs department has actually identified, how much would have been saved fiscally but also in terms of human life if there had been the right price on carbon emission as of 2015. Numbers are quite staggering.
“If that was to happen, there would be more public spending available to build hospitals, to build roads, to build schools, and to support education and health for the people.”
The IMF boss advised that a social protection safety net is put in place for when fuel subsidy would be removed. “There has to be a social protection safety net that is in place so that the most exposed in the population do not take the brunt of the removal of subsidies principle. So that is the position we take.
“As far as Nigeria is concerned, with the low revenue mobilization that exists in the country in terms of tax to GDP, Nigeria is amongst the lowest.
“A real effort has to be done in order to maintain a good public finance situation for the country and in order to direct investment towards health, education, and infrastructure.”
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