See Marketers reasons for high fuel prices at filling stations

1 month ago 3

Oil marketers have provided insight into the high fuel prices at filling stations across the country
They explained that they are unable to order petrol directly from NNPC Limited and now rely on private depots
These private depots charge high prices, and independent marketers, who operate over 70% of petrol stations in the country, are forced to pass the increased cost on to customers

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

Oil marketers in Nigeria have expressed concerns due to the shutdown of the Nigerian National Petroleum Company Limited (NNPC) portal used to purchase petrol.

They claim that they are currently unable to apply for petrol through the system, leaving them waiting for over 90 million litres of petrol, valued at approximately N79 billion.

Punch reports that the concerns are on the heels of complaints last month when the NNPC acknowledged the portal shutdown, citing a significant backlog of orders as the reason.

NNPC limited spokesperson Olufemi Soneye explained that the portal closure was necessary to avoid holding marketers’ capital for an extended period.

His words:

"We have a significant backlog to address. The closure is intended to prevent us from holding marketers' funds for too long."

Soneye said the portal would be reopened once the backlog was reduced.

Marketers patronise private depots at a higher price

While Soneye did not specify the extent of the backlog, independent marketers revealed that more than 2,000 tickets for 45,000 litres of petrol each are yet to be cleared.

This backlog translates to millions of litres of petrol waiting to be supplied to marketers across the country.

Chinedu Ukadike, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN) confirmed that the marketers are still waiting for the portal’s reopening, which has caused considerable delays.

He said:

"We have more than 2,000 tickets for 45,000 litres each. That’s a huge number of litres waiting to be supplied."

President Billy Gillis-Harry, the Petroleum Retail Outlets Owners Association of Nigeria (PETROAN), also confirmed that their members cannot access the NNPC purchasing portal either.

He added that marketers have resorted to purchasing petrol from private depot owners, who sell at a premium, resulting in higher prices at independent filling stations than those owned by the NNPC or major marketers.