The Independent Petroleum Marketers Association of Nigeria (IPMAN) has called on the Nigerian National Petroleum Company Limited (NNPC) to settle long-overdue petroleum equalisation funds owed to its members.
IPMAN also urged NNPC’s Group CEO, Bayo Ojulari, to clear the backlog of loading tickets by supplying marketers with the petroleum products they have already paid for. IPMAN Publicity Secretary, Chinedu Ukadike, made the appeal during an interview on Thursday.
Ukadike praised the new NNPC management for generating over N20 trillion in revenue within four months but highlighted that the company still owes marketers approximately N25 billion in unpaid equalisation funds.
The Petroleum Equalisation Fund (PEF) was established by the Federal Government to compensate marketers for losses incurred by selling petroleum products at uniform prices across Nigeria. It functioned as a subsidy managed by the now-defunct Petroleum Equalisation Fund Management Board.
In 2021, the Nigerian Midstream and Downstream Petroleum Regulatory Authority was created by merging three former agencies: the Petroleum Products Pricing Regulatory Agency, the Petroleum Equalisation Fund Management Board, and parts of the Department of Petroleum Resources.
Following President Bola Tinubu’s announcement to end the fuel subsidy, the government closed the PEF, in line with the Petroleum Industry Act. Meetings with marketers took place in 2023 to reconcile accounts and address unpaid funds, but IPMAN members remain owed to this day.
Ukadike expressed hope that the current NNPC management will settle these debts, especially as the market liberalizes.
“We have been urging NNPC to reimburse us or supply products for some of our tickets stuck in their system. Although they have begun addressing this, progress is incomplete. We appeal to the GCEO to clear these outstanding tickets,” Ukadike said.
He added, “Since the company has made significant gains, they should also clear the pending PEF funds to enable marketers to compete effectively in the deregulated market and support energy security. The debt has decreased from over N40 billion to around N25 billion.”
When asked about communication with NNPC, Ukadike confirmed that the issue has been raised and acknowledged at a recent meeting with the GCEO’s representative. However, some payments still remain outstanding.
He recommended that NNPC and the regulator compile all bridging claims and clear them in one go to enhance fuel distribution.
Regarding the loading tickets, Ukadike admitted he could not specify the exact number or cost but confirmed that marketers have paid for fuel they have yet to lift.
“The industry is improving with no more fuel scarcity. The current challenge is a price war, which is a natural result of market liberalization. Demand and supply now determine prices, giving marketers and consumers more choices,” he explained.
An NNPC official, speaking on condition of anonymity, promised to look into the matter but was not authorized to make an official statement at the time of reporting.
Advertisement
