Why petrol is more expensive at our stations – IPMAN

The Public Relations Officer, IPMAN, Chinedu Ukadike in an interview with Vanguard on Monday, said that because NNPC Retail’s portal has been down, members have been unable to obtain products directly from the government-owned oil company.
Ukadike pointed out it is impossible for independent marketers to sell below ex-depot price or without adding the cost of transportation, wages of workers and other logistics costs.
“We source our product from the open market. We buy from tank farm owners, major marketers and depot owners. For some time now we have not been able to get products from the NNPC because the portal is down. It is undergoing an upgrade and we have not had any access to it. Without access, you cannot get a product.
“Also, they are updating licences for marketers and we have been urging them to increase the speed. You must understand that the sector is liberalised and sell as you buy. Presently, we load between N650 to N700 per litre. By the time you add the cost of transportation and others, you will realize how difficult the sector is for independent marketers.
“We are just managing to keep our stations open so that we don’t go out of business and have to sack our workers. You must also understand that prices are determined by demand and supply. Currently, the demand is higher than supply and that will naturally lead to an increase in price,” Ukadike added.
Also speaking on why IPMAN-operated stations were selling at higher pump prices, the Chairman, IPMAN Aba Depot, Maxi Oliver Okolo said independent marketers were loading from privately owned depots at N800 per litre.
“It’s impossible for us to sell below that amount and that is why we have asked the government to intervene and ensure that we also get our products directly from NNPC depots. That is the only way we can compete and remain profitable.
“Many of our members have shut down their stations and sent their workers away because we can no longer cope with the harsh business environment”, he added.

Source: Allnews

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