Oil Marketers Demand Refund On ‘Enormous Loss’ Incurred Over New Petrol Pump Price

Petrol Marketers want a refund on what is described as ‘enormous loss’ incurred in the sudden reduction of the pump price petrol by the Federal Government.

Here are the details

Citing an alleged record of huge revenue losses on the account of the federal government’s recent reduction of petrol pump price from N97 per litre to N87, petrol marketers on Tuesday demanded a refund from the government to at least cushion their shock from the unexpected price drop.

They noted at a meeting with the Department of Petroleum Resources (DPR) in Abuja that the abrupt reduction in the pump price of petrol by N10 per litre by the government had left them with “enormous loss.” They however, did not quantify the alleged financial loss.

Under the aegis of the Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Major Oil Marketers Association of Nigeria (MOMAN), the marketers stated that the announcement by the federal government came to them as a surprise and that they had no prior knowledge of a planned reduction in fuel pump price.

Notwithstanding the development and extant of old stock of petrol in their possession, the Vice-President, IPMAN, Mr. Matgandi Shettima, said the marketers had to comply despite the fact that they were never informed.

“The price reduction came to many of us as a surprise. This is because we had lots of stock in our underground tanks before the announcement was made. We had to comply as responsible citizens but the fact remains that we were taken unawares. I don’t know how they intend to pay for the huge loses and if the loses will be paid. But we want it to be paid,” Shettima said.

Similarly, a representative of MOMAN, Mr. Wasiu Alade, said at the meeting that the price reduction was tough for many marketers to comply with as directed by the government.

Alade stated that the association had met with the Petroleum Products Pricing Regulatory Agency (PPPRA), Pipelines and Product Marketing Company (PPMC), as well as other related agencies to demand for a refund for its members.

According to him: “I will like to state here that although we complied, it was not easy for many of us. In fact, complying was a tough decision for many marketers but we had to because we are law abiding.

“We are having talks with the PPPRA, PPMC and others on how to get a refund but we are yet to get any good response from these agencies of the federal government. We however hope that something will be done about this soon.”

He added that: “It is a heavy blow for us in the new calendar year it has already affected our operations, we never found it funny but we don’t have options than to comply in order not to sabotage government efforts.”

But responding to the demands of the marketers, the Chief Regulatory Officer, Planning of PPPRA, Mr. Michael Nwonu, said he would not comment on the issue as it was coming at a sensitive period when the country was preparing for elections.

Nwonu said: “I will urge you to always visit our website because we update it regularly in order to address some of your concerns. You can still visit our office for further clarification.

Meanwhile, the DPR has said that it was considering a review of filling station licence fees for oil marketers and operators in Nigeria’s oil and gas industry.

The Zonal Controller of Operation DPR, Mr. Mohammed Usman, stated at the meeting that the licence fees paid by filling station owner was the lowest paid by all business enterprises operating in Nigeria.

He noted that with N30,000 charged for two years, operators of filling stations in the country can probably be regarded to be on holiday.
“If those that are selling potatoes heard that it is N30,000 we are charging the filling stations as licence fees for two years, I am sure they will want to lynch us,” Usman said.

He further noted: “Therefore DPR is considering upward review of the licence fees for filling stations.”

Usman also said the agency would increase the tenure of the licence from two to five years so that it will be more convenient for oil marketers.

Shetima had earlier urged the DPR to review the span of the license from two to five years. He also called on the agency to ensure that the tank farm owners do not sell.