Fuel scarcity bites as IPMAN insists N165 per litre no longer feasible

Fuel scarcity has begun hitting major cities in Nigeria amid plans by the Independent Petroleum Marketers Association of Nigeria (IPMAN) to sell fuel for nothing below N180 per litre.

Petrol used to sell for N165 per litre helped by government subsidy.

Speaking with the press on Monday, chairman of IPMAN Lagos satellite depot Akin Akinrinade said members can no longer dispense petrol at filling stations below N180 per litre.

“Our members can no longer sell at N165. In fact, there is no reasonable businessman in this business that can sell below N180 per litre,” he said.

Akinrinade noted that members of IPMAN shut down their stations “not because we are striking”.

“We are not on strike rather the business environment has been very hostile to us such that we can no longer do business under this condition,” he said.

“For you to load a litre of petrol, you will pay N162 per litre. You will have to add the cost of transportation which is between N6 to N8, depending on the distance within Lagos. If it is outside Lagos, it is much more than that.

“So, If you add N8 to N162, you already have N170 and this product is regulated by the government and the government wants us to sell at N165. We have not added the charges at the depots and the running cost at our stations.”

Akinrinade added that the cost of diesel amid the country’s epileptic electricity supply situation also affected its members’ running costs.

“You know what diesel says now, and you know how epileptic power supply is, we run on generators using diesel at N800 per litre,” he said.

“There is no station in Lagos or anywhere that uses less than 50 litres per day.”

Last week, southwest zone of IPMAN threatened to direct its members to sell petrol at N180 per litre.