NNPC, Marketers Deny Clash Over Fuel Pump Price

Key petroleum products marketers have denied having any disputes with the Nigerian National Petroleum Company (NNPC) Limited over a possible pump price adjustment of Premium Motor Spirit (PMS), popularly called petrol.

The NNPC similarly denied having any disagreement with independent petroleum marketers on the matter and on alleged subsidy on PMS.

The national oil company also assured Nigerians that there is no plan to increase the pump price of petrol, and urged motorists nationwide not to engage in panic buying, as there is presently ample availability of PMS across the country.

The assurances and denials are contained in a statement signed by the national oil company’s spokesman, Olufemi Soneye, yesterday.

The clarifications followed reports that fuel marketers under the aegis of the Independent Petroleum Marketers Association of Nigeria (IPMAN) had clashed with the NNPC Ltd over the payment of subsidy.

However, in a terse statement yesterday, NNPC spokesman, Olufemi Soneye, insisted that subsidy had been entirely removed on petrol.

The Nigerian National Petroleum Company (NNPC) Limited has denied that it had a dispute with independent petroleum marketers over an alleged subsidy on Premium Motor Spirit (PMS).

A newspaper report (not LEADERSHIP) had claimed that fuel marketers under the aegis of IPMAN had clashed with the NNPC Ltd. over the payment or non-payment of petrol subsidy by the federal government.

However, reacting to the story yesterday, Soneye said subsidy had been entirely removed on petrol.

“NNPC Ltd emphasises it has not clashed with any party,” Soneye said, adding that the publication’s headline was unfortunate.

“The publication sought confirmation on alleged subsidy reduction, to which NNPC responded that subsidy has been entirely removed.”

Both IPMAN and the Petroleum Products Retail Outlets Owners (PETROAN), in different conversations with the LEADERSHIP, denied any form of disagreement with the oil company.

National president of IPMAN, Elder Chinedu Okoronkwo, in a telephone conversation said his group had not engaged the NNPCL in any discussion, either on petrol subsidy removal or price adjustment.

Okoronkwo said the supply mechanism as established since last year had been in place and that groups speculating such disputes were not key marketers with substantial market share and as such should not agitate the public with unfounded rumours.

The Petroleum Products Retail Outlets Owners (PETROAN) on its part said that petroleum products supply by the NNPCL is currently sustainable and that sales margins being offered gives marketers some level of revenue recovery

The group, with over 19,000 members, said it had proposed a meeting with the NNPCL to discuss operational modalities that will govern the downstream sector in the new year.

The national president of the PETROAN, Dr. Billy Gillis-Harry, while speaking with our correspondent on the news report of marketers’ planned hike of petrol due to uncleared issues surrounding petrol subsidy removal by the federal government, said the group was working with the NNPC on current supply figures.

Gillis-Harry said at no point did marketers disagree with the NNPCL on price increase because the market supply system had not been altered.

“Some people would argue that there is no subsidy removal, or there is partial removal, but there is no empirical evidence to accept that analysis. The NNPC has assured of sustainable supply to marketers and that has not been breached.

“The price NNPCL is selling to marketers provides a recovery option but what is there is that overhead cost and cost of transportation is eating up our earnings.

“Today our members sell between N620, N640 and a little above due to supply locations,” he explained.

According to the PETROAN president, while the NNPC is selling to marketers, there is a little disparity at depots operated by marketers.

However, he said NNPC had not reneged in its supply arrangements and it had ensured marketers are not pushed to sell above any threshold.

He said marketers are not privy to any subsidy removal, and that the NNPCL, which is marketers’ principal suppliers, had maintained that it is recovering cost of supply at prevailing market prices.

“There may be some kind of mathematical or economic computation between the government and NNPC but all parties are not reporting losses in the name of subsidy policy,” he said.

According to him, the proposed meeting it had initiated was to talk about reassurances of sustainable market supply, adding the group was not in disagreement with the NNPCL.

He, however, urged that the federal government initiate consistent stakeholders’ meetings to share insights into market operations and possible policy changes.