oil marketers

In a troubling development for Nigeria’s petroleum sector, oil marketers across the country have raised alarms over illegal levies being imposed on them by union operatives at various oil depots. Despite previous efforts to abolish such practices, these illicit fees have found their way back, leading to increased costs that ultimately burden consumers.

The resurgence of these illegal levies has been confirmed by multiple sources within the oil marketing industry. Marketers report that unions at depots across the country are demanding a charge of about N1 per liter of petroleum products loaded. This levy, while seemingly small, contributes significantly to the overall cost, adding to the landing cost per liter and inflating fuel prices for end users. For an industry already grappling with fluctuating international crude prices and domestic operational challenges, these unauthorized fees only add to the financial pressures on oil marketers.

The practice of imposing these levies was banned in the past, with regulatory authorities taking steps to streamline operations and improve transparency across the sector. However, it appears that the unions, through renewed influence, have once again infiltrated the system, reestablishing a culture of extortion that many had hoped was permanently eradicated.

Marketers and industry stakeholders have expressed frustration with this development, calling on the government and regulatory bodies to take immediate action. According to reports, the illegal levies not only increase operational expenses but also contribute to inefficiencies and delays within the supply chain, affecting the availability and cost of fuel nationwide.

One marketer, who preferred to remain anonymous, explained, “It’s disheartening that after all the efforts to create a streamlined and corruption-free supply chain, we are back to this. Every additional cost, whether it’s N1 or N10 per liter, eventually affects the pump price that consumers pay. We urge authorities to act swiftly to address this challenge before it spirals out of control.”

These union activities have drawn widespread criticism, with experts emphasizing that such practices could hinder progress in the nation’s energy sector and deter investments in the downstream segment. By inflating costs through unofficial channels, the unions are effectively undermining efforts to stabilize fuel prices and improve the overall efficiency of fuel distribution across the country.

With oil marketers calling for urgent intervention, the spotlight is now on Nigeria’s regulatory bodies to step in and put an end to these illegal practices. Industry watchers hope for swift and decisive action, as continued extortion threatens to undo years of progress made towards ensuring a fair, transparent, and sustainable petroleum industry.