Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has sealed 14 filling stations in Kano State. The enforcement team of NMDPRA, formerly Department of Petroleum Resources (DPR), Kano Zonal Office, shut the stations, predominantly owned by independent petroleum marketers, for selling fuel to the public at “outrageous” prices.
Captured during the enforcement monitored by journalists were prices ranging between N300, N290 and N295 per litre, a cost NMDPRA considered ‘unreasonable’ for public consumption.
Addressing journalists after the exercise, NMDPRA Coordinator, Aliyu Sama, said the sealed stations risk revocation of their operating licences or payment of N150,000 fine per pump.
Sama explained that though independent marketers were not expected to dispense at discounted price like the major marketers, he maintained that the agency would not accept any act of “racketeering” from the private marketers.
According to him, independent marketers have no justifiable reason to sell at N300 or N290 per litre after claiming equalisation funds from the Federal Government, adding that over 100 stations found guilty of similar offence were sealed in December 2022.
“If you check, the major marketers are selling at discounted rates of N185 per litre. We know it is not feasible to ask the independent marketers to sell at that rate, considering their claim that they were buying the product at higher cost from depot.
“But as at today in Lagos, the depot owners are selling at N230 per litre to independent marketers; so, with this amount, we understand they cannot sell below cost prize. But you can’t sell at N300 or N290 per litre because government is paying N45 per litre as bridges claim.
“If the landing cost is between N230 and N280, and you subtract bridges cost of N45 from the landing cost, you have N235, at least we expect a profit margin of N15. So, marketers can still sell below N290 and make their profits conveniently. As an agency, we are not in the position to fix price; but we would not accept a price that is not considerate to the public,” Sama noted.
Similarly, the enforcement team stormed outlets of major marketers found hoarding and/or selling above N185 per litre few weeks ago. NMDPRA ordered for the immediate shut down of the facilities after ensuring that the hoard products were dispensed.
Efforts to speak with the leadership of the Independent Petroleum Marketers Association Of Nigeria (IPMAN) in Kano was not successful, as telephone calls and text message put across to the Chairman, Bashir DanMalam, were not responded to.
