Numerous filling stations run by independent oil marketers have now set the pump prices of Premium Motor Spirit, commonly known as petrol, at rates ranging from N900 to N1,000 per litre.
The owners of these stations appear unconcerned about the prices at retail outlets managed by the Nigerian National Petroleum Company. Petrol rates at NNPC stations vary from N568 to N617 per litre, resulting in long queues at these stations.
As Nigerians voice their worries about the high costs set by independent petrol dealers, the Federal Government has pledged to close down stations that are found selling PMS at excessively high rates.
This announcement was made through the Nigerian Midstream and Downstream Petroleum Regulatory Authority, emphasizing that it is against the interests of Nigerians for marketers to engage in profiteering from the sales of PMS.
Independent oil marketers claim that they have been purchasing petrol from private depot owners for as much as N850 per litre since the previous week, justifying the high pump prices.
However, the spokesperson of the NMDPRA, George Ene-Ita, contended that the petrol price data they receive from their officials at the depots differ.
“Our depot personnel observe a different price because we mandate them to publish the daily prices at the depots, and it is not N850 per litre. The figures provided by our field agents at the depots differ,” he explained.
When informed that certain filling stations operated by independent marketers in Lagos and various states are selling their products for as high as N900 and N1,000 per litre, the NMDPRA representative stated that such outlets would face consequences if caught.
“If we identify these outlets, our course of action is to shut them down, as NNPC is the sole distributor of the product and provides us with the ex-depot prices for off-takers. We collaborate to determine the margins, and there is no justification for such high prices,” Ene-Ita emphasized.
The NMDPRA official further mentioned that the agency cannot reconcile the inflated petrol costs imposed by independent marketers.
“Are these stations displaying these high prices at their pumps?” Ene-Ita inquired.
Our correspondent confirmed, leading the regulatory agency’s official to reiterate, “Once we locate these outlets, we will shut them down. NNPC provides us with the pricing, and there is no reason for pump prices to be that high. It should not exceed N650 per litre.”
The NMDPRA spokesperson cautioned profiteering marketers to cease such practices, affirming that the agency will not tolerate operators exploiting Nigerians.
Investigations conducted by our reporters indicate that marketers are reaping increased profits as the fuel crisis persists in the country.
NewsNow learned that filling station owners are taking advantage of the situation to boost their profits, given the lack of enforcement over specific prices by regulators.
Due to the inadequate supply from NNPC, private depot owners have reportedly raised petrol prices up to N850 per litre.
These depots supply to independent marketers who are unable to procure the product directly from NNPC at approximately N570 per litre like the major marketers.
Consequently, independent marketers are selling petrol to consumers at prices ranging from N850 to N1,000, or even higher in remote areas.
“Marketers are not complaining about low profit margins anymore. This is their opportunity to make profits. The challenge lies in the product’s availability,” a source informed NewsNow.
“The pricing is influenced by the limited supply. It is a demand and supply issue. The prices are expected to remain high, at least for now. Filling stations see this as a chance to boost their profits. This situation is abnormal. Regularcy will allow for monitoring by the regulatory authorities. Can the regulators effectively monitor at this time?
“Imagine investing around N30 million with NNPC to purchase petrol, and it takes a month to receive the product. If you borrow N30 million from a bank at the prevailing interest rates, won’t that be a challenge?” a marketer highlighted.
Sources at the Lagos depot shared anonymously with our correspondent that NNPC is still rationing petrol despite assurances of returning to normalcy last Wednesday.
It was noted on Monday that marketers were only receiving half of their requested metric tonnes.
A depot operator mentioned that although the situation had slightly improved, the supply remains insufficient to alleviate queues and make petrol accessible to all Nigerians.
Another source hinted that the Federal Government was now prioritizing the Federal Capital Territory, Abuja, to alleviate long queues at filling stations.
“Queues are reducing slightly in Abuja with almost 70% of the trucks directed towards the city. The instruction is for them to prioritize deliveries to Abuja,” the depot operator disclosed to NewsNow.
Contrary to speculations of fuel hoarding by marketers, the manager of a filling station in Ogun State, known as Adeyanju, refuted the claim, stating that fuel naturally evaporates if stored for prolonged periods.
“PMS evaporates over time. If you hoard it for too long, the volume decreases. No tank operator would hoard fuel, especially during this profit-making period,” the manager explained.
He urged NNPC to increase supply, observing that there would be no immediate resolution to the queues in the current week.
In Osogbo, Osun State, on Monday, petrol was priced from N900 to N1,000 per litre at filling stations run by independent marketers.
However, major marketers dispensing petrol in the same area offered the product at N700 per litre.
Many filling stations in the city did not open, leading to a 50% increase in fares by intra-city bus operators due to the expensive fuel prices.
In Damaturu and surrounding regions, petrol prices reached between N980 and N1,000 at stations operated by independent dealers.
Similar situations were observed in parts of Lagos and Ogun states, with petrol being sold for as high as N950 and N1,000 per litre at stations owned by independent marketers.
In Kano State, the reluctance of many marketers to open their filling stations, despite having stocked fuel, has fueled black market activities.
Independent marketers in Kano continue to sell PMS for N980 and N1,000 per litre, while black market prices soar to N1200 – N1300 per litre.