Fuel Scarcity: Tank Farm Owners Agree on Ex-Depot Price

The Ijegun-Egba Tank farm owners and Operators in Nigeria have resolved to sell the Premium Motor Spirit (PMS) also called petrol to marketers at ex-depot price of N172 beginning from Monday.

The association is an umbrella organisation of all the oil companies currently engaged in the operation of petroleum storage tank farms and facilities at Ijegun – Egba, Satellite Town, Lagos, along the Ojo Creek Channel.

It consists of the following companies:

A.A. RANO Nigeria Limited, JGold Nigeria Limited, Chipet International Limited, Emadeb Energy Services Limited, First Royal Oil Nigeria Limited, MAO Petroleum Company Limited, Menj Oil Limited, Ocean Pride Energy Services Limited, Stallionaire Nigeria Limited, Wosbab Energy Solutions Limited and Rainoil Limited.

The group said the move is to ensure that fuel stations across the country sell the product at the government approved price and to reduce the hardship faced by Nigerians in accessing the product.

In a communiqué signed by Mr Adebowale Olujimi, Chairman of the group, the owners said they were working with the Nigerian National Petroleum Company Limited (NNPCL) to achieve an uninterrupted distribution by Monday of the 127 million litres of its February allocation.

“We will utilise our storage networks to supply and distribute petroleum products to various part of the country to ensure that Nigerians have Premium Motor Spirit (Petrol) for their daily operations. We are also committed to maintaining our transparency in this respect.

“That our Tank farms will continue to sell and load at the government regulated price of N172 Ex Depot to all marketers. All our members’ retail outlets across the Nation will continue to sell petroleum products at the government approved price.

“We consider ourselves as an integral part of petroleum product supply chain in ensuring product supply, energy stability and energy security. We have played and will continue to play significant roles in the supply and distribution of petroleum products across the nation.

“Our members are committed to ensuring efficient petroleum product distribution, and by extension ensuring energy security in line with the Federal Government’s policies and regulations.”

The tank farm owners further reiterated their resolve to contribute to the National economy, energy security and play significant roles in the supply and distribution of petroleum products across the nation to ameliorate adverse effects the current challenges have on businesses and commercial activities.

It also restated its members’ commitment to continue to contribute to government’s effort to build a robust business environment to stimulate economic growth, especially in making petrol available to Nigerians.

Meanwhile, Independent marketers of Premium Motor Spirit, have lamented their inability to uphold the government’s price cap of N195/litre pump price.

Earlier, the Nigerian National Petroleum Company Limited, Major Oil Marketers Association of Nigeria, Depot and Petroleum Products Marketers Association of Nigeria, Independent Petroleum Marketers Association of Nigeria, security agencies and the downstream regulator had all agreed that petrol be sold at N195/litre starting Monday.

Oil marketers said the agreement was reached at a meeting in Abuja on Tuesday, as participants resolved that beginning from Monday, February 6, 2023, the pump price of petrol should not exceed N195/litre, a development which dealers, particularly independent marketers, described as tough due to the high ex-depot price of the commodity.

They argued that to avoid having their outlets sanctioned, many fuel stations operated by independent marketers would be shut from Monday as it made no business sense to sell a product lower than the cost price.

IPMAN’s National President, Debo Ahmed, said that the approved ex-depot price of petrol was recently raised from N148/litre by the NNPCL to N172/litre, but depots hardly dispense the commodity at this cost.

Ahmed, who was reacting to the notice to members issued by the Public Relations Officer, IPMAN Ibadan Depot branch, Mojeed Adesope, stated that marketers were advised to sell the product in stock now before the enforcement begins on Monday.

NAN/Punch/Hauwa Abu