Nigeria: Under-Dispensing of Petrol - Frustration, Anger As Fuel Stations Increase Hardship

3 November 2024

Vehicle owners narrate ordeal·Outlets caught to face heavy sanctions -- NMDPRA·Close monitoring needed - Association of Public Policy Analysis

·Pump manipulation rampant - Consumers

Despite the hike in petrol prices beyond the reach of the average Nigerian, many filling stations engage in under-dispensing of petroleum products by manipulating their pumps, findings revealed.

The practice, which didn't start in this dispensation, has increased the hardship faced by citizens, who currently pay through their nose for petrol for commercial and domestic purposes.

With under-dispensing, consumers get little at higher prices, thereby increasing the hardship being experienced across the country.

The current official retail price of petrol is N1, 030 per litre while independent marketers sell between N1,200 and N1,300, depending on location. From October to date, the rate at which the product is purchased has increased three times, thereby compounding the plight of the people.

Specifically, the price was increased on October 9, 2024, from N897 to N1,030. That was followed by the September 2, 2024, increase. The pump price was increased from N617 to N897, leading to more increase in prices of goods and services. The latest hike was announced on October 29, 2024.

Checks by Sunday Vanguard showed that the crippling multiplier effects the price hike has on consumers have been worsened by the exploitation being experienced at filling stations.

Apart from NNPCL facilities, it was learnt that people do not have trust in other petrol stations as some are believed to have adjusted their metres to shortchange buyers. The situation has left unsuspecting customers with sad experiences, making some devise different measures to avoid being cheated.

It was discovered that petrol attendants, who carry out these actions do not usually act alone. In fact, their station managers, it was further gathered, aid and abet the practice, which is further impoverishing Nigerians, who largely depend on Premium Motor Spirit, PMS, as fuel is also known, for commercial and domestic needs.

Checks by Sunday Vanguard indicated that the situation has worsened because the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, the agency responsible for regulating the midstream and downstream petroleum operations, including technical, operational, and commercial activities, lacks presence at filling stations.

The agency had recently raised the alarm that there is a surge in complaints from consumers regarding dishonest practices among some fuel marketers, who are allegedly tampering with dispensing pumps to deliver less fuel than paid for. It consequently expressed commitment to ensuring transparency and consumer protection in the downstream petroleum sector.

Nonetheless, the practice is increasing rather than reducing, leading to outcry among consumers, who want the authorities to urgently intervene.

Sunday Vanguard learnt that under-dispensing, which undermines consumer trust and breaches operational standards, is a violation of the Petroleum Industry Act ,PIA.

But fuel marketers appear to care less about such violations following the inability of NMDPRA to act decisively.

In various chats with Sunday Vanguard, consumers narrated their ordeal, expressing frustration at what they called the failure of the authorities to address the situation, especially at a time when Nigerians are experiencing the worst economic crisis in decades.

Manipulation

Petrol consumers in Abuja told this newspaper that retail outlets manipulate their pumps to undercut consumers.

Speaking on the issue, Tayo Adedeji, a cab driver waiting in line at the NNPC Mega Station, Abuja, said pump manipulation at petrol stations is rampant.

He lamented that despite the high cost of petrol, station owners and pump attendants were still taking advantage of consumers.

Adedeji said:"Many stations are doing it. They manipulate the pump and under-dispense to consumers. I have not experienced it here. It is a bit difficult (to know if NNPC manipulates pumps) because the high pump price means you are confused and don't know what you should get.

"I come here to queue because it has the cheapest petrol in the two and because there are several pumps you are sure it will get to your turn no matter what happens."

He urged government and "those in charge of ensuring that the measurements are accurate to leave up to their responsibility. Now that they said there are no more subsidies, at least they work to protect consumers from extortion and manipulation."

A taxi driver, Ibrahim Tanko, noted that "most cases of pump manipulation occur outside the main town. Go outside the city and see what is happening there in the Mararaba and Nyanya axis. There is a station, name withheld, in my area after the checkpoint in Mararaba. We call them the official black market.

"They probably sell three-quarters of a litre as one litre. The agencies in charge need to live up to their responsibility and protect consumers from extortion", he pleaded.

Vehicle owners lament

In a chat with Sunday Vanguard in Lagos, another commercial driver, Uchenna Godwin, said: "Under-dispensing did not start today. It has been with us because some Nigerians are insincere. They always manipulate every process. That is what we are seeing. Almost all the petrol stations in Amuwo Odofin are under dispensing.

"They adjusted their metres in such a way that what they dispense does not reflect the money we pay. The stations that attract some elements of trust is NNPCL at Second Rainbow. Others are the same. We are just at their mercy. I do not know if there is a consensus that they should all adjust their metres because it is widespread."

A victim of under-dispensing, Ose Okoror, said: "I almost fought one of the petrol attendants in my area when I discovered that after selling to a customer, he did not cancel the transaction before selling to me. I did not even know. My son was the one who brought it to my attention. Imagine buying a litre at the rate of N1,250 and ending up being cheated. At that rate, I should have bought 20 litres for N25,000, but they ended up selling 16 litres to me because they adjusted their pump.

"How can we continue like this as a people who want our leaders to change from their wicked ways? When my son brought it to my attention, I had to confront the fuel attendant. He was just rude to me and started insulting me, saying I was accusing him because of "common 20 litres" . In anger, I pushed him and almost landed him a punch but for bystanders who intervened. When the station manager came out and heard the story, he sternly questioned his staff who owned up."

A motorist who also said he was a victim, Dubem Munachiso, said: "For me, I am just tired of driving my car in this country, especially since Tinubu started his administration. The President does not seem to care much about the pains of Nigerians. He seems to be more concerned about realizing his ambition. That's why he cares less about what we go through fueling our cars.

"To worsen the situation, one is not sure of the metres the petrol stations use. You pay through your nose for fuel and end up being exploited by petrol stations. Is it not better to stop using cars? But it is not possible. Apart from MRS, I do not have confidence in any petrol station anywhere in Lagos. What you pay for is not what you get. How can they be exploiting our pains? The same people complain about Tinubu, but they are worse than the man."

On his part, Thompson Watagbo, said: "Many Nigerians are worse than their leaders. Honesty has no place in the lives of Nigerians, especially the business people, who are capitalizing on inflation to exploit their fellow countrymen.

"I am not complaining about the fuel issue anymore because things won't get any better. Who is regulating the petrol stations? Do they visit them regularly to find out how accurate their pumps are? Why hasn't someone been brought to book for defrauding customers?

"I cannot understand why the owners of petrol stations feel good defrauding their customers. At a time when we pay so much to purchase little, they still defraud us by under-dispensing. It is just the failure of regulatory authorities that emboldens them. What I do now is that I don't buy from any station except NNPC."

Also speaking, Busaya Akinreti, a victim, said: "I have now resorted to buying with jerry cans to ensure that what I get is what they paid for. I always have 25 and five litres gallons in my car. I wasn't doing it before but since I discovered that it is difficult to under-dispense when you use kegs, I started using gallons. Whenever I get to a fuel station, I tell them I am buying in gallons.

"Sometimes, they refuse, claiming they don't sell in gallons, but when I offer them money they give me what I want. And whenever I buy in gallons, it's always accurate. So that is what I do now. It was a friend who suggested it to me, and it's been working for me. I can't afford to allow myself to be cheated anymore by these greedy petrol station owners.

"The owners of the facilities can't claim ignorance of it. Without their authorization, it won't happen. So the authorities should look into the matter. It's not new, but allowing it to happen now that fuel is racing towards N1500 a litre will be a great injustice to Nigerians who are currently suffering from Tinubu's bad policies."

Furthermore, Musa Ubandaji said: "Since I don't trust their metres, I buy from the black market. What's the need of buying at petrol stations when you are not sure of the accuracy of their dispensers? I prefer buying from black markets in front of petrol stations to driving into the stations to buy. I don't even buy more than 15 litres for a tank of more than 100 litres. I pay N5, 500 for five litres.

"I buy 15 at the rate of 16,500. I am cool with it instead of going to the petrol station where they will under sell it to me. When I am also buying, I don't allow them to use new gallons because they haven't expanded. I prefer the old Jerry cans that have expanded in size as a result of long usage. Some black marketers sell it for 6000. As a rule, I patronize only two black marketers to avoid buying bad petrol. I don't just buy from every roadside seller. This is where APC government has brought us. It is sad."

Stations caught to face heavy sanctions - NMDPRA

Speaking to Sunday Vanguard, Head, Public Affairs, NMDPRA, George Ene-Ita, warned that any station found to have manipulated its pumps faces severe sanctions including having the outlet shut down.

Ene-Ita explained that the authority routinely monitors petrol stations across the country as part of its mandates, noting that under-dispensing to consumers is an infraction to regulations put in place by NMDPRA.

"Monitoring of retail outlets is a routine activity for us across the states. While I cannot say this is done daily, I can confirm that our officials in the states carry this out as part of their work schedule," he added.

He disclosed that "any pump found to be under-dispensing is immediately sealed and penalties imposed. And when there is a consistent pattern of violations, a station can be shut down".

He stated that the deregulation of the downstream sector means that NMDPRA no longer enforces pricing as marketers sell according to market forces and the price of crude oil in the international market.

Close monitoring needed - Association of Public Policy Analysis

Meanwhile, in an interview with Sunday Vanguard, consumer rights advocate and Chairman, Association of Public Policy Analysis, Chief Princewill Okorie, called for close monitoring of the retail outlets to ensure that petrol was dispensed at the accurate volume. He said: "Amid the high prices, the responsibility of the regulator and the department of weights and measures should ensure that consumers are not shortchanged. The pumps are easy to manipulate."

On his part, another industry leader, who pleaded anonymity, said: "The regulator should go beyond verbal threats to put in place a mechanism that would enable consumers to report or share their experiences. The agency should also be ready to respond as quickly and seamlessly as possible in order to restore sanity in the downstream and midstream sectors. Nigerians need to get value for their money."

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