Fuel queues resurfaced in many parts of Lagos State on Monday, following the decision of some members of the Independent Petroleum Marketers Association of Nigeria (IPMAN) to shut down their operations.
“This is not because we are on strike, but because we can no longer do business under this condition,” Akin Akinrinade, chairman, IPMAN, Lagos Satellite Depot, Ejigbo, said.
Mr Akinrinade, who confirmed the development to journalists in Lagos, said the members decided because they could no longer operate at a loss.
He said while the government had fixed N165 per litre as the pump price of petrol, the current realities in the market showed that the product should be retailed at a minimum of N180.
Mr Akinrinade said IPMAN members should be getting supply from the Pipelines and Product Marketing Company (PPMC) and had made payments of over N1 billion since October 2021.
He said the products were yet to be delivered, forcing members to patronise private depots for products while at the same time servicing loans borrowed from banks for their money with PPMC.
“Now, these private depot owners have increased the ex-depot price of PMS from N148.17 to N162 per litre. That is the amount they are selling to us.
“When you factor in the handling charge, transportation and running cost of our stations, you will see that even within Lagos, the minimum we can retail petrol is about N180 per litre.”
He noted that the war in Ukraine had also disrupted the supply chain, adding that the government was trying to mitigate the impact on Nigeria.
He, therefore, urged the government to direct the private depots to revert to the old ex-depot price for PMS or deregulate the downstream sector to allow market forces to determine the price.
He further called for the resumption of pumping products through the PPMC Ejigbo depot, enabling IPMAN members to get supplies at a cheaper cost.
Meanwhile, observations showed that fuel stations in Oshodi, Ejigbo, Ikeja, Egbeda and Ikotun were not selling petrol.
Long queues were seen at the few stations selling, with both private and commercial motorists complaining about the situation.
Source: Peoples Gazette.