The Independent Petroleum Marketers Association of Nigeria (IPMAN) has stated that some of its members have decided to shut down their operations because they no longer wish to operate at a loss or under unfriendly conditions, leading to the latest fuel scarcity.
Due to the shutdown of these filling stations, there is a scarcity of product and huge lines of vehicles at these stations on Monday.
Mr Akin Akinrinade, Chairman of IPMAN, Lagos Satellite Depot, Ejigbo, revealed the new development to journalists in Lagos.
While the government set the pump price of Premium Motor Spirit (PMS) at N165 per litre, Akinrinade believes that the product should be marketed at a minimum retail price of N180 per litre at filling stations.
Reasons for the fuel scarcity in Lagos
The current fuel scarcity in Lagos is due to the fact that the majority of fuel outlets in the state are owned by IPMAN members who are struggling to function in a hostile climate.
The IPMAN chairman noted that this one is unique in that IPMAN members opted to shut down their stations for a specific reason. “This isn’t because we’re on strike; it’s because we can’t do business in this environment.”
IPMAN members, according to Akinrinade, should be receiving supplies from the Pipelines and Product Marketing Company (PPMC), which has received over N1 billion in payments since October 2021.
Akinrinade proposed that the government direct private depots to revert to the former ex-depot price for PMS or deregulate the downstream industry to allow market forces to determine the price as part of the solution to the problem.
He also urged the federal government to expedite the restoration of the country’s refineries in order to boost domestic refining capacity, as well as the resumption of pumping products through the PPMC Ejigbo depot, which would allow IPMAN members to receive supplies at a lower cost.