Marketers row with depots as fuel smuggling underpins scarcity
By Jeph Ajobaju, Chief Copy Editor
Marketers and depot owners are having a row over alleged diversion of 16.6 billion litres of subsidised fuel to neighbouring countries where smugglers sponge off Nigeria.
A source in the Depots and Petroleum Products Marketers Association of Nigeria (DPPMAN) said perennial fuel scarcity arises partly because of the diversion of products to Benin Republic, Cameroon, and other neighbouring countries.
The source disclosed that about 46 million litres of petrol diverted daily – which add up to 16.79 billion litres yearly.
Nigeria reportedly consumes 60 million litres of petrol daily, a figure the Nigerian National Petroleum Company (NNPC) says is far less but is that bloated because of smuggling.
“We had a meeting with the PPMC some weeks ago, and part of the complaints was that the volume we load is too high, forcing them to reduce the volume they give to us,” the source said.
“From their records, they said marketers loaded 106 million litres per day as of April. Nigeria consumes 60 million litres per day, where are the remaining litres of fuel going? They are taken outside the country.
“That’s a product Nigeria is paying heavily to subsidise, and marketers are busy taking it out and denying Nigerians full benefits of what they pay for.”
Fuel diversion is against the backdrop of long queues at petrol stations across Nigeria caused by fuel scarcity.
Petrol now sells for N180 per litre, up from the recent black market price of N175 per litre, which is above the N165 official price.
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Marketers deny smuggling
Marketers deny involvement in smuggling, saying their hands are full, and have no reason to indulge in sabotaging the economy, as articulated below per reporting by The PUNCH.
Tunji Oyebanji (Managing Director/CEO – 11plc, formerly Mobil Oil Nigeria Plc, and former Major Oil Marketers Association of Nigeria (MOMAN) Chairman)
“Our members are law-abiding and can never engage in such activity. Our members own 33,000 stations in the country, and we move about 50-60 per cent of products available for consumption.
“So, we are opposed to smuggling because it causes a huge problem for the country.”
Clement Isong (MOMAN Executive Secretary)
“They know who they are accusing, and it’s definitely not our members. We buy products from the NNPC to our depots, and then distribute them to our stations.
“So, they can’t be accusing major oil marketers of diversion because we run a fully integrated business model.”
Mike Osatuyi (Independent Petroleum Marketers Association of Nigeria (IPMAN) National Operations Controller)
“If it is true, then, it takes two to tango. They should go and ask the Customs, police, NIA and others whether they see our members’ trucks carrying such products across the borders.
“Why are they accusing marketers of smuggling when we have those who are being paid to police our borders?”
