Review Fuel Policies, Increase Refining Capacity – IPMAN Tells FG Amid Petrol Scarcity

The Independent Petroleum Marketers Association of Nigeria has attributed the situation to low refining capacity and inconsistent government policies in the sector.

Speaking on Tuesday, during an interview on Channels TV, IPMAN Deputy President, Zarma Mustapha, said that the scarcity is a result of the dwindling supply of petroleum products.

Mustapha added that the roots of the current fuel struggle can be traced back to the late ’70s when the Nigerian government established IPMAN and other major marketers to alleviate supply challenges in the petroleum sector.

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He said, “Despite efforts to expand refining capacity and build infrastructure such as depots and refineries, the country has failed to keep pace with the growing demand for petroleum products, leading to recurrent shortages.

“There is a need for continuous investment in refining infrastructure to meet the needs of Nigeria’s burgeoning population and economy.

“Government policies have also played a significant role in exacerbating the fuel scarcity situation. Inconsistencies in pricing regulations, particularly regarding PMS, have deterred private investors from participating in the importation and distribution of petroleum products.

“While certain products like Automotive Gas Oil (AGO) and kerosene have been deregulated, PMS remains under the control of the NNPCL, further limiting competition and supply chain efficiency.

“Despite efforts by some independent marketers to import petroleum products, the unfavourable foreign exchange rates and high operational costs have rendered such ventures unprofitable.

“The disparity between the exchange rates at which NNPC imports fuel and the prevailing market rates has discouraged private importation, leaving NNPCL as the primary importer of PMS.

“As a result, independent marketers like IPMAN are left to rely on NNPC for their supply, impacting their bottom line.”

“The current situation highlights the urgent need for a comprehensive review of government policies and increased investment in refining capacity to ensure a stable and reliable supply of petroleum products across Nigeria.

“As citizens endure the inconvenience of fuel scarcity once again, stakeholders look to the government for effective solutions to address the underlying issues plaguing the country’s petroleum sector.”