PETROAN Criticises ADITOP’s Revenue Collection Practices

The National Public Relations Officer of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Dr. Joseph Obele, has addressed the ongoing dispute between PETROAN and the Association of Distributors and Transporters of Petroleum Products (ADITOP) that recently threatened petrol supply in Rivers State. Last Wednesday, ADITOP personnel blocked trucks at loading depots, preventing them from departing unless they paid certain levies.

Speaking with RadioNow 95.3 FM on Now Breakfast, Dr. Obele explained that the conflict arose when ADITOP attempted to gain access to oil depots in order to collect revenue. He stated that this move sparked tensions between the two associations.

“This body called ADITOP, they were trying to gain entrance to the depots as it concerns revenue collection. The starting point was put to be River Street. So on West River Street, they put their men at all the loading depots and their men blocked all the trucks that they can’t go in without paying levies. And all the truck drivers and everybody in the whole depot in Nigeria were aware that all levies and dues are basically paid to Mutenz and other bodies as endorsed and agreed by all the stakeholders. So it was a great surprise and a big fight. And the debt for the loading environment of petroleum products is too steep for us to have to upgrade and all the tracking and all those countries over there. So the River Street Commission of Police, the government of River Street stepped in. And at that point, Mutenz shut down the whole loading operations in River Street. So no truck was coming in and no truck was leaving River Street. And that was to cause a very big economic crisis in River Street. The government intervened to get the Commission of Energy and the Commission of Police suspended the strike.”

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Dr. Obele criticised ADITOP’s actions, describing their attempt to collect levies without following the proper procedures as ‘impossible.’ He added that such actions undermine the role and relevance of the Nigerian Union of Petroleum and Natural Gas Workers (NUPENG), which traditionally oversees operational standards in the sector.

“The due process is you must get an endorsement from NUPENG. It is practically impossible for any person to step into the oil and gas sector and you command a collection of levy and dues from operators in this sector without NUPENG giving you an endorsement. Practically impossible. So then they were like undermining the relevance of NUPENG and NUGU. They didn’t use reconciliation, they didn’t use negotiation as a tool of getting an endorsement. They have been quoting the Nigeria constitution that says that freedom of assertion that every person is entitled.And to the stakeholders, the disadvantage of allowing any person to step in and impose levy on people, that will further reflect at the buying point. Whatever we incur as a cost of logistics for buying these products, we add it at the buying point. So NUPENG is protecting the general public.You know, you don’t just step in and add levy of 30,000, 20,000 as the case might be. Don’t do that. Let stakeholders agree. Stakeholders have never agreed to add it at the buying point, yet add it by all means we must do.”

The dispute highlights the growing concerns over regulatory practices within Nigeria’s petroleum industry, with PETROAN calling for a resolution that respects due process and ensures the smooth distribution of fuel across the country.