The Independent Petroleum Marketers Association of Nigeria (IPMAN) has said that the ongoing price war between the Nigerian National Petroleum Company Limited (NNPCL) and Dangote Petroleum is negatively affecting its members.
Mr. Chinedu Anyaso, Chairman of IPMAN, Enugu Depot Community, in charge of Anambra, Ebonyi, and Enugu states, stated this during an interview with journalists in Awka on Friday.
Anyaso said the price instability in the sector had resulted in a high level of uncertainty and a reduction in investors’ confidence.
The News Agency of Nigeria (NAN) reports that Premium Motor Spirit (PMS), also known as petrol, sells for between N865 and N950 per litre in Awka.
He said that while competition had contributed to price reductions, which benefited the public, the fluctuation in PMS prices was driven by rivalry between the two companies rather than changes in the international market.
According to him, marketers are on the receiving end of this price war between Dangote and NNPCL.
“Our members are incurring losses because of the unstable environment.
“For instance, a marketer will buy products from either of them, and before leaving the depot, the price of petrol may drop by about N10 or N20 per litre.
“The cause of the recent drop was that marketers had discussions with one of the companies, and without any major changes in the market, the other company slashed prices by a wide margin, thereby putting most of our members in jeopardy.
“We can no longer project with certainty; paying loans and salaries is becoming difficult because profitability is no longer guaranteed due to frequent price variations,” he said.
READ ALSO:Dangote slashes PMS price by N65, IPMAN warns of marketers’ loss
Anyaso said that to restore stability in the market, NNPCL must engage in full-time production.
He called on the Federal Government to revisit the outstanding bridge claims owed to marketers, noting that many businesses had shut down while others were struggling to survive due to non-payment.
“For the masses to enjoy the full benefits of deregulation and fair pricing, both companies must operate from the same standpoint. NNPCL has to go into full-scale production.
“That is the only way they can compete and ensure a stable market. A combination of local production and importation cannot guarantee that. We need to protect marketers and save jobs,” he said.
