Reps faults DAPPMAN on high price of kerosene

The House of Representatives Ad-hoc Committee on the Subsidy Regime had  on Wednesday faulted the Depot and Petroleum Products Marketers’ Association of Nigeria for creating untold hardship for Nigerians who buy Kerosene.

The committee had observed that middle men, who have no business in retail  world were adding costs to petroleum products, which now affects consumers.

DAPPMAN  appeared before the ad-hoc committee to dispute allegations that it was re-selling products to retail outlet owners at a high rate.

The association Chairman, Mr. Sylverius Okoli, however,  admittied that its members were selling petroleum products above approved prices.

Okoli said that DAPPMAN buys kerosene from the Petroleum Products Marketing Company at N40.90k per litre to sell  at N75 per litre.

He had stated that the association incurs extra costs ranging from N12 to N20 on every litre of the product and that automatically is the reason why it sells as high as 75 naira per litre..

But, the committee Chairman, Mr. Farouk Lawan,  debunked his defence stating that the association was making so much gains which had negative effect on the poor Nigerians who use kerosene.

He said, “With the additional cost of N12, you should be selling
kerosene at about N52 per litre; why N75? Even if we use the maximum additional cost of N20, as you claimed, the price per litre will be about N60.90k; why do you sell at N75?

“The idea of subsidising kerosene is to make it cheap and affordable to the poor. Kerosene is for the poor, like the old woman in the
village, who uses a lantern. It is not for those who fly around in
private jets; they don’t need kerosene.”

The committee faulted the attitude of the middle men whose interest is clearly to maximise profit to the detriment of Nigerians.

“Things cannot continue to work that way. Worse still, there are some people who neither have storage facility nor retail outlets.

They simply collect products and re-sell to other marketers,” Lawan added.

However, Okoli put up a defence for his association, affirming that its members were not fraudulent have not taken funds without carrying out the required services.

He stated that his association was operating within a moderate profit margin.

Okoli said, “Some persons have come before the committee to make all kinds of allegations against us. It is sad that all marketers, including DAPPMAN members, have been labelled as criminals.

“When you say marketers are benefiting from subsidy; that is not correct, what is happening is that marketers took money from banks to import products. They are being refunded for the difference between the government approved prices and the actual pump prices of the products.”

The House of Representatives Ad-hoc Committee on the Subsidy Regime
had  on Wednesday faulted the Depot and Petroleum Products Marketers’
Association of Nigeria for creating untold hardship for Nigerians who
buy Kerosene.

The committee had observed that middle men, who have no business in
retail  world were adding costs to petroleum products, which now
affects consumers.

DAPPMAN  appeared before the ad-hoc committee to dispute allegations
that it was re-selling products to retail outlet owners at a high
rate.

The association Chairman, Mr. Sylverius Okoli, however,  admittied
that its members were selling petroleum products above approved
prices.

Okoli said that DAPPMAN buys kerosene from the Petroleum Products
Marketing Company at N40.90k per litre to sell  at N75 per litre.

He had stated that the association incurs extra costs ranging from N12
to N20 on every litre of the product and that automatically is the
reason why it sells as high as 75 naira per litre..

But, the committee Chairman, Mr. Farouk Lawan,  debunked his defence
stating that the association was making so much gains which had
negative effect on the poor Nigerians who use kerosene.

He said, “With the additional cost of N12, you should be selling
kerosene at about N52 per litre; why N75? Even if we use the maximum
additional cost of N20, as you claimed, the price per litre will be
about N60.90k; why do you sell at N75?

“The idea of subsidising kerosene is to make it cheap and affordable
to the poor. Kerosene is for the poor, like the old woman in the
village, who uses a lantern. It is not for those who fly around in
private jets; they don’t need kerosene.”

The committee faulted the attitude of the middle men whose interest is
clearly to maximise profit to the detriment of Nigerians.

“Things cannot continue to work that way. Worse still, there are some
people who neither have storage facility nor retail outlets. They
simply collect products and re-sell to other marketers,” Lawan added.

However, Okoli put up a defence for his association, affirming that
its members were not fraudulent have not taken funds without carrying
out the required services.

He stated that his association was operating within a moderate profit margin.

Okoli said, “Some persons have come before the committee to make all
kinds of allegations against us. It is sad that all marketers,
including DAPPMAN members, have been labelled as criminals.

“When you say marketers are benefiting from subsidy; that is not
correct, what is happening is that marketers took money from banks to
import products. They are being refunded for the difference between
the government approved prices and the actual pump prices of the
products.”