Fuel Price Hike: PPMC Demands Differential Payments‎ From Marketers

Following the hike in the pump price of petrol from N86.50‎ to N145 by the Federal Government, the Petroleum Product Marketing Company (PPMC) has directed all independent marketers who have paid for products prior to the increase to come forward and pay difference in the price.
A memo which the PPMC issued last week which was obtained by Shipping Position Daily directed all marketers to return the old tickets earlier issued to them by the PPMC.
Meanwhile, some of the marketers have told our correspondent that they were ready to battle the PPMC over the price increase and the demand for differential payments. They stressed that they were not going to pay the difference in the new fuel price, because they had paid for the product months before the increase.
But the PPMC in a memo signed by one Ogunniran P.A and tagged‎ "PPMC Price Review"‎ dated May 12, 2016 with Ref No: PPM/PDO/CAP/040, reads in part: "You are directed to return all the tickets in your possession‎ to the PPMC office at the truck park for capturing and onward return to the secretariat"
"This will give you the opportunity to pay the difference. Please note that there is no loading until you pay the differential" it said.
Speaking with Shipping Position Daily on the development, a marketer, Mr. Chris Iyasere said government was short-sighted with the increment in the fuel pump price.
According to him, fuel price is currently N133 per litre at the depots‎, but some marketers have bought the product for N120 and they have their NNPC ticket.
"Now there is a sudden increase to N145, the people that have paid this money since one month ago, you are now saying they should make up the difference before you can load them"
"You have forgotten that some of these people borrowed money from the bank with interests and one month has lapsed in the process"
He said that NNPC ought to have collected all the old tickets and given the marketers a date before the new price could take effect.
He said "what of the people that have fuel at the filling stations and they adjusted their meters to N145 even though they bought it for less, whose interest are they serving"
Another stakeholder, a banker, who simply identified himself as Mr. Mark, confirmed to our correspondent that the lowest amount some marketers have had course to return to the PPMC as differentials was N825,000‎.
"This is a difference for those that bought for N120 before they are selling now at N133 from the depot, some marketers have paid for 69,000 litres at the rate of N77, they are still negotiating with NNPC on the issue"
‎"But Who will eat the differentials? Because NNPC bought this product lower than they are currently selling it" he pointed out.