The Independent Petroleum Marketers Association of Nigeria (IPMAN) has urged the Nigeria National Petroleum Corporation (NNPC) to ensure that kerosene is distributed through its members.

Mr Chinedu Okoronkwo, the Chairman of IPMAN’s Products Allocation Committee, made the call shortly after an inaugural meeting of the committee in Lagos.

Okoronkwo said the meting was to ensure that NNPC’s kerosene allocations to IPMAN were given to genuine members to ensure effective distribution and availability.

“NNPC should allocate IPMAN products strictly to its members to avoid diversion by un-recognised marketers.

“The only time we can checkmate mischievous marketers is when all follow due process,’’ he said.

The chairman said that IPMAN was ready to partner with NNPC in addressing the scarcity of petroleum products.

The Secretary of the committee, Mr Olumide Ogunmade, expressed the hope that the committee would ensure equitable distribution of products to IPMAN members.

“We are not fighting the NNPC but want to set records straight so that our valued members who have invested their money in products will get them.

“If we are given 76 per cent allocation for our members, what we are witnessing today on kerosene won’t have occurred because we are widely spread in term of retail outlets and number,’’ he said.

Ogunmade said the committee desired that all petroleum products allocation by the NNPPC/PPMC should go to genuine marketers for effective distribution and monitoring.

Our correspondent reports that IPMAN on Wednesday set up a 22-man committee to oversee the union’s allocation of products from the NNPC.

The committee was mandated to recommend solutions to the lingering scarcity of kerosene.

Meanwhile, some major and independent marketers have alleged that the NNPC, and Pipelines and Products Marketing Company (PPMC) are under-supplying them kerosene.

Some of the marketers, who spoke with newsmen yesterday in Lagos on condition of anonymity, said the situation had resulted in the artificial scarcity and hike in the price of the commodity.

“The inability of NNPC and PPMC to flood the market with the commodity caused the scarcity, and hike in the price of the commodity,’’ one of them said.

The source said that less than five million litres of kerosene were being distributed to the marketers daily, as against 12 million litres the NNPC claimed were being supplied.

The marketers alleged that 30 of them were being allocated a truck of 33,000 litres daily.

They, however, suggested that they should be given licence to import the commodity as part of efforts to address the lingering scarcity of kerosene.

“We urge the government to put in place appropriate mechanisms to ensure that the product is available throughout the country.

“Importation of kerosene by NNPC alone cannot solve the problem of scarcity; government should give licence to independent marketers to fast-track the importation of the commodity to ease scarcity,’’ a marketer said.

A source in the Department of Petroleum Resources (DPR), who preferred anonymity, also advised the NNPC to flood the market with the commodity, and publish daily and monthly allocations to the marketers.

The source said NNPC should increase supply of kerosene to the marketers and other depot owners to ease scarcity as well as reduce the price of the commodity.

Dr Levi Ajunoma, Group General Manager, Public Affairs Division of NNPC, said about 50,000 metric tonnes of kerosene had been allocated to major and independent marketers, as well as depot owners within the last one month.

Our correspondent, however, reports that in spite of this, kerosene still sells at between N120 to N135 per litre in some filling stations.

In spite of announcements by the NNPC that it had distributed sufficient kerosene to oil marketers nationwide, the product has remained scarce and expensive in Asaba.

Our correspondent reports that between June 27 and yesterday, not more than five out of more than 40 petrol filling stations in Asaba had the product for sale to the public.

An investigation showed that the stations that sold the product were only those owned by independent oil marketers.

Not even NNPC Mega station or its grade B type, both in Asaba, had the product for sale.

For instance, out of the more than 15 filing stations on Onitsha high way, only two, King’s Petroleum and Emmy and Sons Oil Ltd, sold the product during the week at exorbitant rates.

Anioma Petroleum and Odims Global Resources Ltd., both oil dealers located on Anwai Road, sold the products too.

No major oil marketer in the city sold kerosene during the period in spite of allegation by Independent Petroleum Marketers Association of Nigeria (IPMAN) in the state that greater percentage of kerosene allocation went to them (major marketers).

According to IPMAN Chairman in the state, Chief Akpos Edafevwotu, NNPC allocates about 70 per cent of kerosene to its mega station in Asaba and the smaller ones around the cities.

He said the corporation also gave greater share of the remaining 30 per cent to major marketers, leaving little for his association’s members.

Edafevwotu, however, said that kerosene allocation to IPMAN by NNPC during the period of scarcity was raised to 16 trucks daily as against seven previously but noted that the supply was still inadequate.

The situation in Asaba has again boosted black market operation in the sale of the product.

A litre of the product at such market costs between N200 and N240.

One of the operators who pleaded anonymity, told newsmen that the price of a litre at the “illegal” spots depended on the sources of the stock.

Automated Gas Oil (AGO), known as diesel, has also remained scarce in the Delta capital for a long time and has led to high price of the product.

Currently, a litre sells for between N155 and N165 at filling stations.

In a related development, the NNPC (Retail Products Section) is collaborating with the Capital Oil and Gas in a nationwide kerosene distribution in tankers.

The aim is to ease scarcity.

Our correspondent reports that the pilot scheme began on Saturday in Lagos with 200 tankers loaded with the product.

The vehicles are to be taken to all the nooks and crannies of Lagos State for kerosene sales to residents.

Mr Ifeanyi Ubah, the Chief Executive Officer of Capital Oil and Gas, said at the unveiling of the pilot scheme that the idea was to boost NNPC’s efforts to end kerosene scarcity.

Ubah said the distribution would eliminate long queues at NNPC fuel stations.

“Tankers will be stationed at some locations in the city and rural areas to sell to individuals who want to buy kerosene; the best method to address panic buying of kerosene.

“The product will be handled and sold to Nigerians by sub-dealers who must have paid for them through the banks to avoid sharp practices,’’ he said.

Ubah said the method would go a long way in addressing kerosene scarcity.

He said that the schemes would be conducted in Abuja, Kano and Port Harcourt.

Dr Levi Ajuonuma, the Group General Manager, Public Affairs Division in NNPC, said the corporation on Thursday allocated 25,000 metric tonnes of kerosene to major and independent marketers to ease the scarcity.

“Distribution bottlenecks have been our major challenge but we have finally addressed that, and we believe all marketers will ensure the circulation of the product across the country,’’ he said.

Ajuonuma also said that the truck distribution would effectively address the lingering scarcity.

“We implore both regulatory bodies and the media to assist in monitoring the distribution of the product at the official pump price of N50 per litre,’’ he said.

Mr Victor Enilama, the Operations Officer at the Department of Petroleum Resources, urged the NNPC to publish all kerosene allocations to marketers to guide the department in monitoring their sale.

Enilama said the DPR would not seal a fuel station or prosecute its owner when there was no product in the station.

“Kerosene is under-supplied; the NNPC should beef up supply to marketers and depot owners to ensure adequate distribution and sales at the normal pump price,’’ he said.

He urged the corporation to ensure sustainability of the kerosene distribution, warning that if not properly monitored, it would be mismanaged and abused.

Our correspondent reports that kerosene is still sold for between N120 and N135 per litre in some filling stations in Lagos State.