Distributors, Transporters Blame NUPENG For Fuel Price Increase

The ongoing fuel crisis and the rise in fuel prices in Nigeria have sparked controversy within the petroleum sector, with distributors and transporters blaming the National Union of Petroleum and Natural Gas Workers (NUPENG) for these challenges.

At a recent stakeholders meeting held in Abuja, the president of the Association of Distributors and Transporters of Petroleum Products (ADITOR), Lawal Muhammad Danzaki, articulated the frustrations of his group in light of what they term extortion by the union.

Chaired by the Etsu Nupe, Alhaji Yahaya Abubakar, the meeting gathered distributors and transporters to address issues plaguing the industry, particularly the perceived excess charges from NUPENG, which they claim are passed down to consumers.

“Our primary concern is the various branches of NUPENG that impose multiple fees at the point of loading. This financial burden is what ultimately escalates the prices of fuel for the everyday Nigerian,“ stated Danzaki.

According to him, the situation has worsened since the government’s shift towards deregulation in the oil sector.

“You can see how many branches have sprung up under NUPENG. Each collects fees, creating a labyrinth of added costs in an already struggling economy.

“It is imperative that these unnecessary expenses cease if we hope to see any reduction in fuel prices. The costs that we incur are directly related to these excessive charges, which we cannot absorb if we want to remain profitable,“ he said.

In response to claims made by NUPENG chairman, Mr Williams, who labeled the ADITOR as illegitimate, Danzaki firmly defended the organisation’s credibility.

“Is NUPENG an organization that dictates legitimacy? We are recognized by numerous government entities. They are simply panicking because we are challenging their extortion practices. There has to be regulation, and we will stand for that.

“All Nigerian refineries are not operational. Who are the workers of those facilities? NUPENG members. They claim to represent workers while failing to maintain the core institutions that serve this nation,” he said.

During the meeting, Etsu Nupe, Alhaji Yahaya Abubakar, discussed the pressing nature of the fuel subsidy situation in Nigeria, expressing his concerns over the unsustainable nature of current policies.

“Since 2012, we have anticipated this deregulation. With the subsidy removed last year, changes are imperative, not only for our operations but for the benefit of consumers. We must adapt or face continuing crises in the supply chain,” he asserted.

Transporters reported that they are grappling with spiraling costs incurred due to inflation and the depreciating value of the Naira against the dollar, which has sharply increased the price of spare parts used for their trucks, thereby impacting their overall operational costs.

“Throw in extortion and unfair practices by certain entities in the industry, and it creates a hazardous economic environment for all of us,” he said.

The monarch highlighted the direct impact of these circumstances on consumers, stating that every added expense is ultimately translated into higher prices at the pump.

He said that the proposals from ADITOR seek not only to address the financial ramifications but also aim to create a more level playing field within the industry, free from monopolistic control.

The Etsu Nupe called for regulatory reforms to prevent the extortion of transporters and to foster healthier relationships amongst stakeholders.

“It is crucial that we pursue regulatory frameworks that prevent defaulters from operating without accountability in this industry,” he said.

The stakeholder attendees discussed the importance of fostering cooperation among transporters, distributors, and government entities to ensure that new policies aimed at reducing prices reach the common consumer.

The involvement of local leaders, like the Etsu Nupe, has become paramount in facilitating dialogue and ensuring that the voices of transporters and distributors are heard in legislative discussions.