Petroleum Marketers Accuse NMDPRA and DAPPMA of Shady Deals Amid Fuel Scarcity

The present scarcity of petroleum products has been attributed by petroleum marketers to purportedly shady deals between the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Depots and Petroleum Products Marketers Association of Nigeria (DAPPMA), and the Nigerian National Petroleum Company Limited (NNPCL).

The marketers, who requested anonymity, disclosed that since NNPCL was the only company importing the goods, the Independent Marketers—who, they pointed out, own the majority of the nation's retail locations—were now at the mercy of the DAPPMA (the proprietors of the tank farms).

According to the DAILY POST, private depot owners who operate under the DAPPMA's auspices receive petrol from NNPCL, the exclusive importer, at a depot price of N556.5 per litre. However, investigations showed that the proprietors of tank farms sell to marketers for between N700 and N740, leaving them with little to no profit margin to sell at stations.

A marketer who asked to remain anonymous stated: “What we used to have in the past was an arrangement where the NNPCL gave allocations meant for Independent marketers to the private depot owners to sell to marketers with a benchmark, a reasonable price.

“Now, the independent marketers have no allocation, they are at the mercy of the tank farm owners. A situation where there is no ex-depot price won’t augur well for the industry. Private depot owners now sell at N800 to those of us who will sell at retail outlets to ordinary Nigerians.

“We are the ones Nigerians are accusing of hoarding products and selling at exorbitant prices. Instead of the midstream regulatory agency doing its job by beaming its searchlight on the activities of the tank farm owners, by insisting on the ex-depot price, they are using the marketers as scapegoats.

“There is a cabal in the sector creating problems for President Bola Ahmed Tinubu. He must show the determined will to break their rank. How many stations do tank farm owners have? But they are making huge profits to the detriment of Nigerians.”

The marketers asserted that the agreements between the NNPCL, the owners of the tank farms, and the NMDPRA were detrimental to the products' accessibility and easy delivery to retail locations.

In light of this, downstream companies have urged President Bola Tinubu to take immediate action on the matter.