NNPC, Fuel Marketers on Collision over Introduction of Bulk Purchase Agreement Fee

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2020
NNPC Tower

 

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The Nigerian National Petroleum Corporation (NNPC) and the Independent Petroleum Marketers Association of Nigeria (IPMAN) are heading for a collision over the introduction of Bulk Purchase Agreement (BPA) fee by the corporation.

The marketers alleged that NNPC introduced BPA fee of N125,000 yearly for bulk buyers of petrol and also directed that each marketer should make five years upfront payment, which amounted to N625,000.

However, IPMAN members in the South-west Zone have vowed not to comply with the NNPC’s directive.

Addressing journalists yesterday, the Chairman of IPMAN, Ibadan Depot branch, Alhaji  Raheem Tayo, said the imposition of N125,000 fee on each marketer would be resisted because it would erode the margins of the marketers.

 ‘‘How can our members be subjected to the payment of N125,000 annually for BPA fee, when our members are confronted with challenges loading petroleum products from private depot, who charge far above the recommended retail price fixed by government,’’ he said.

He argued that the fee is unrealistic because the Ibadan depot has also been out of service for over five years.

 Tayo also faulted the decision of the NNPC to demand five years upfront, amounting to N625,000 from each marketer.

According to him, the levy would lead to untold hardship for motorists as the association would not hesitate to shut down its retail outlets in the South-west, if the NNPC goes ahead to implement the decision.

Tayo explained that the association has directed its members not to pay the levy, stressing that the rehabilitation of Ibadan Depot should be accorded more urgent priority than the payment of the levy.

Tayo has called on the Oyo State government to look into the issue of huge taxes and levies, which, he argued, was impacting negatively on the operations of IPMAN members.

 “A situation where state approval by Oyo State government has now risen to over N10 million from the initial N1.5 million, which our members cannot even pay, can only mean one thing; that the state government is banning construction of filling stations. Government should realise that many outlet owners are only keeping their stations hoping that things would improve. And until the federal government gets a grip of the situation, especially the supply of petroleum products, unprofitable business would persist in the downstream sector,’’ he explained.

Also speaking on the challenges facing IPMAN in accessing products at the private depots in Lagos, Tayo said IPMAN executive had been mandated to liaise with the zone to find lasting solution to the issue of the private depot owners in Apapa to ensure that members get fair share of  allocation of petrol.

In a related development, IPMAN Ibadan depot has inaugurated a 16-member executive to form part of the newly harmonised depot, zonal and national executive to steers its affairs for the next five years

The new Ibadan depot executive has  Alhaji  Raheem Rasaq Tayo, Mr. Samuel Egbewole and  Mrs Salawu Olufunke as  Chairman, Vice Chairman and Secretary, respectively.