Revealed! Marketers speak on new fuel price in filling stations

• Oil marketers have attributed the current wave of petrol scarcity to ongoing logistical problems
• They claimed that since there is now a limited quantity, oil marketers might simply distribute what they have
• Transportation costs have gone up because some filling stations are now charging between ₦800 and ₦1,000 for a litre

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

Oil marketers have blamed persistent logistical issues for the current shortage of Premium Motor Spirit, or gasoline.

Because there is currently a limited quantity that oil marketers may only distribute what they have. Photo Credit: Contributor
Source: Getty Images

Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Owners Association (PETROAN), made this revelation during his Monday appearance on Channels Television's Morning Brief.

He asserts that oil marketers might distribute only what they have because supply is currently limited.

He said,

“I think until we get our supply challenges sorted out efficiently and abundantly, we will not be able to get out of this circle. I believe you must have heard the NNPC’s communications director who explained that the issues at stake are still logistics-related.“So until they get that resolved, we may just be managing the little they bring, and give to us to distribute among our members. NNPCL is doing its best to bring in products bit by bit, and we can only supply what we have.”

More on Logistics challenge

When asked to give further explanation on what the logistics challenges were all about, he said,

“The logistics issue is about ship-to-ship transfer. Until the ship gets products, it cannot deliver to any of the depots. And until depots have products, we the retailers cannot also have access to products,”

However, he gave his word that marketers and the NNPCL were discussing supply issues.

He said,

“We have been speaking with NNPCL. We encourage them to do more, and I can assure you that they are trying their best.”

Gillis-Harry's explanation of the scarcity follows protracted shortages, particularly in Lagos, the country's north, and other areas.

Over the course of the weekend, though, the shortage reached Lagos. According to Channels Television, some filling stations have started selling a litre of the product for between ₦800 and ₦1,000, which has increased the cost of transportation.

But other gas stations weren't selling the merchandise because black market rackketeers were taking advantage of the circumstances to make quick cash.

According to reports that surfaced last week, the Nigerian National Petroleum Company Limited owed foreign oil dealers money, which was the reason for the scarcity.

Chief Corporate Communications Officer Olufemi Soneye, however, refuted the report in a statement on Sunday.

But Soneye admitted that since transactions in the oil trading industry are done on credit, it is common to owing money occasionally.

Filling stations adjust petrol pump prices again

Legit.ng reported that filling stations in Abuja, Lagos, and other states have again adjusted their petrol pump prices upwards amid worsening fuel scarcity that has frustrated motorists and commuters.

The price hikes, which vary across regions, have added to the growing burden on Nigerians grappling with the rising cost of living.

Legit.ng observed that motorists were buying fuel at some open filling stations at prices ranging from N750 per litre to as high as N900 per litre, depending on locations.

Source: Legit.ng