Marketers Blame NNPC and DAPPMA for Petrol Scarcity

Petroleum marketers have attributed the current shortage of petroleum products to alleged corrupt practices involving the Nigerian National Petroleum Company Limited (NNPCL), the Depots and Petroleum Products Marketers Association of Nigeria (DAPPMA), and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

According to the marketers, the agreements between NNPCL, tank farm owners, and NMDPRA are detrimental to product availability and smooth distribution to retail outlets. They are now urging President Bola Tinubu to urgently address the issue.

Marketers, who requested anonymity, revealed that NNPCL, as the sole importer, supplies petrol to private depot owners affiliated with DAPPMA at a depot price of N556.5 per liter. However, tank farm owners are reportedly selling the product to marketers at N700 to N740 per liter, significantly reducing their profit margins.

One marketer explained: “Previously, NNPCL provided allocations for independent marketers to the private depot owners at a reasonable price. Now, independent marketers have no allocations and are at the mercy of tank farm owners. The lack of a regulated ex-depot price is harming the industry. Private depot owners are now charging up to N800, forcing us to sell at high prices to consumers.”

The marketer criticized the NMDPRA for failing to regulate the tank farm owners’ activities and instead placing the blame on marketers for high prices and alleged hoarding.

“The sector is controlled by a powerful cabal creating issues for President Tinubu. He needs to take decisive action to address these problems. Tank farm owners have fewer stations but are reaping substantial profits at the expense of Nigerians,” the marketer added.