The Independent Petroleum Marketers of Nigeria (IPMAN) has said that the price war between the Nigerian National Petroleum Company Limited (NNPCL) and Dangote Petroleum has resulted in the high level of uncertainty and a reduction in investors’ confidence in the sector. Nigerian real estate investment opportunities.
Mr Chinedu Anyaso, Chairman, IPMAN, Enugu said this in a statement on Friday.
Anyaso said the price instability in the sector is also affecting its members.
The Enugu Depot covers Anambra, Ebonyi and Enugu states and Premium Motor Spirit (PMS) also known as petrol, sells for between N865 and N950 per litre in Awka.
He said though the competition had helped in price reduction, which was also good for members of the public, the fluctuation in price of PMS arose from competition between the two giants and not due to variations 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 any of them and before leaving the depot, you hear that price of petrol has dropped by about N10 or N20 per litre.
The cause of the recent drop was that marketers had discussion with one of the companies and without any major changes in the market, the other company slashed prices by a wide margin, thereby throwing most of our members into jeopardy.
We can no longer project with certainty; paying of loans and salaries are becoming difficult because profitability is no longer guaranteed due to the regular variation in prices,” he said.
Anyaso said that to restore stability in the market, NNPCL had to go into full time production.
He called on the Federal Government to revisit the outstanding bridge claim owed marketers as most businesses had packed up while others were struggling to remain due to non-payment.
For the masses to enjoy the full benefit of deregulation and fair pricing, the two giants have to operate from the same standpoint, NNPCL has to go into full scale production.
That is the only way they can compete and also ensure stable market, combination of local product and importation cannot guarantee us that; we need to protect marketers and save jobs,” he said. NAN
