Managing Director of the Petroleum Products Marketing Company (PPMC), Mr. Umar Ajiya, has declared that the N145 per litre price of Premium Motor Spirit (PMS) also know as petrol encourages fuel smuggling into neighboring countries.
Ajiya who said that this came as price arbitrage, the differential between regulated price in Nigeria and the high products prices in neighboring countries, enjoined Major Marketers Association of Nigeria (MOMAN) to regulate the volumes of petroleum products dispatched to their members’ affiliate stations close to the country’s borders.
The PPMC boss, who, according to a statement, said this during an interactive session with MOMAN executives in Lagos, maintained that the price arbitrage, the differential between regulated price in Nigeria and the high products prices in neighboring countries, encourages smuggling.
The PPMC MD expressed confidence in MOMAN, saying its members remain most reliable in the Nigerian Downstream Petroleum Sector distribution network, even as he advised that members of the Association endeavor to increase the respective storage in their depots and stations to avoid stock-out as the Yuletide approaches.
He gave the assurance that NNPC/PPMC has enough stock of Premium Motor Spirit (PMS), otherwise called petrol, and other products, adding that the company’s petrol stock alone would last about 45-days even in the absence of fresh supplies, and that the target is to get the sufficiency level to 50 days.
“We have 2.2 billion litres of Petrol, 1.1 on land and 1.1 on marine, 800 million litres in PPMC depots in addition to 27-day sufficiency of AGO, 98-day sufficiency of ATK and 48-day sufficiency of DPK,’’ the MD stated.
He implored MOMAN to take advantage of the NNPC/PPMC stock sufficiency and request for products to always wet their stations across the country.
The MD stated that NNPC/PPMC has stocked-in products in the nine Inland depots, including Enugu and Aba and will commence selling by 1st December 2018 with a view to forestalling frequent shortages being experienced during Christmas and New Year in the eastern part of the country.
Responding, MOMAN executive secretary, Mr. Clement Isong, said the association was committed to wetting their stations in state capitals and other locations across the country.
“We are ready to support NNPC/PPMC to flood the nation with products during the Yuletide season and beyond as we go into general elections next year,’’ the ES stressed.
He encouraged NNPC/PPMC management to sustain the tempo of petroleum products supply to MOMAN to ensure products availability at all times.
