Menu Close

Why fuel queues return to Lagos −IPMAN

*The leadership of the Independent Petroleum Marketers Association of Nigeria has revealed the members decided to withdraw their services as they could no longer operate at a loss in the economy

Isola Moses | ConsumerConnect

Motorists queue for fuel at a petrol station in Lagos on Monday

Emmanuel Akosile | ConsumerConnect

Fuel queues reappeared  in most parts of Lagos State Monday, June 20, 2022, following the decision of some members of the Independent Petroleum Marketers Association of Nigeria (IPMAN) to shutdown their operations.

ConsumerConnect reports Mr. Akin Akinrinade, Chairman of IPMAN, Lagos Satellite Depot, Ejigbo, who confirmed the development to reporters in Lagos, disclosed the members took the decision because they could no longer operate at a loss.

The IPMAN Chairman noted though the Federal Government had fixed N165 per litre as the pump price of Premium Motor Spirit (PMS), also known as petrol, the current realities in the energy market indicated, that the minimum the product should be retailed at the stations should be N180 per litre.

Akinrinade also stated the current scarcity visible witnessed in Lagos is informed by the fact that majority of petrol stations in the state are owned by IPMAN members, who are finding it difficult to operate in a hostile environment.

“As you can see, the queues are back and this is the second time we are witnessing it this year.

“However, this one is peculiar in the sense that for a particular reason, IPMAN members decided to shut their stations.

“This is not because we are on strike, but because we can no longer do business under this condition,” said he.

The Chairman contended that IPMAN members ought to be getting fuel supply from the Pipelines and Product Marketing Company (PPMC), having  made payments of over N1 billion since October 2021.

According to him, the petroleum products were yet to be delivered, hence forcing IPMAN members to patronise private depots for products, while also servicing loans borrowed from banks for  money deposited with PPMC.

Akinrinade further stated: “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 also noted: “We want Nigerians to know that IPMAN members are patriotic citizens and we are not out to sabotage the effort of government because we know this hike in petroleum products prices is not peculiar to Nigeria.

“The ongoing conflict between Russia and Ukraine has disrupted the supply chain and the Nigerian government is doing its best to mitigate its impact on our nation.”

The IPMAN Chairman 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 determine fuel price.

He also advised the government to expedite action on the rehabilitation of Nigerian refineries towards increasing the domestic refining capacity  to meet consumers’ demands.

Akinrinade as well requested resumption of pumping products through the PPMC Ejigbo Depot (in Lagos), which would enable IPMAN members to get supply at a cheaper cost.

As regards the fuel supply situation at Oshodi, Ejigbo, Ikeja, Egbeda and Ikotun areas Monday, the majority of the filling stations were not selling petrol, agency report said.

Long queues were seen at the few stations selling with both private and commercial motorists complaining about the situation.

Mr. Godwin Eke, a motorist, said that the return of fuel queues in the country was not good for the economy.

He stated: “We are spending hours here queuing to buy fuel when we could have been doing something more productive with our time.

“I have not been to my shop since morning because I want to fill my tank, which will last me for the week.”

In his reaction, Mr. Aliyu Dawodu, a commercial bus driver, also said the scarcity was not good for business, especially as the drivers could not increase their fares.

However, Mr. Ayorinde Cardoso, Zonal Operations Controller, Nigerian Midstream and Downstream Petroleum Regulatory Authority, advised the public not to engage in panic buying, report said.

Cardoso said: “There is sufficient fuel at the depots and jetties.

“As of today (Monday) we have a total of 234,920,127 litres of PMS in various depots in Lagos.

“In addition, we have four vessels in Lagos jetties discharging 186,753,650 litres of PMS.

Kindly Share This Story


Kindly share this story