Why filling stations adjusted petrol prices as NNPC fails to supply

• Petrol scarcity has persisted in parts of Nigeria, such as Abuja, Lagos and Ogun states, as of Sunday, July 7, 2024
• An investigation revealed that petrol stations had adjusted their pumps to sell the product at N800 per litre
• Oil marketers blame the hike in prices on ex-depot owners who sell the product at N720 per litre from N630 per litre

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

Abuja residents are currently grappling with petrol scarcity as the commodity has become scarce and sells at higher prices.

Findings show that some petrol stations sold the product for N800 per litre as of Sunday, July 7, 2024, except for NNPC stations, whose prices remained at N617 per litre.

Several petrol stations across Nigeria have adjusted their pump prices Credit: Bloomberg/Contributor
Source: UGC

Petrol hits N900 per litre in some states

Black marketers around some filling stations sold petrol for as high as N1,000 per litre as customers formed long queues in several stations in the nation’s capital.

Reports say petrol scarcity is gradually seeping into Lagos and other parts of Nigeria as private depot owners hiked the ex-depot prices from N630 per litre to N720.

Several filling stations in Lagos, Ogun, and some states have reportedly run out of stock due to the high prices at private depots.

Punch reports that petrol stations sold PMS as high as N900 per litre in those areas.

According to reports, the National Vice President of the Independent Petroleum Marketers Association of Nigeria, Hammed Fashola, said several filling stations did not open for business because they had no petrol.

Marketers blame NNPC for petrol scarcity

He said the NNPC, the sole importer of petrol, should explain to Nigerians what happened to the product.

The situation has led depot owners to sell PMS to marketers above N700 per litre. In the past, depot owners sold PMS to marketers between N630 and N650 per litre.

IPMAN members have reportedly appealed to the NNPC to supply them with petrol directly, as it does to bigger marketers, but the national oil firm has not done so.

The IPMAN Vice President appealed to Nigerians to refrain from panic-buying the product so the petrol in circulation could go around.

Filling stations adjust prices as depot owners hike costs

Legit.ng previous reported filling stations across Nigeria have adjusted their pump prices from N62 per litre to new prices following the scarcity of Premium Motor Spirit (PMS), also known as petrol, especially in Abuja. 

The new scarcity comes amid reports that Nigerian National Petroleum Company Limited (NNPCL) owes around $3 billion to fuel traders for imported petrol. 

Marketers under the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) and the Independent Petroleum Marketers Association of Nigeria (IPMAN) confirmed the return of fuel scarcity. 

Also, new petrol queues have resurfaced in many filling stations in several parts of the country, as many independent marketers have shut down. 

Dealers closed their retail outlets because they could not access PMS due to the hike in the ex-depot price of the commodity to N710/litre by private depots. 

Motorists besieged the few stations selling petrol on Friday, July 5, 2024, operated by the Nigeria National Petroleum Company Limited and some prominent oil marketers in Abuja and neighbouring states.  

NNPC makes promises after building filling stations for cheaper fuel

Legit.ng previously reported that the Nigerian National Petroleum Company Limited (NNPC) has unveiled plans to build about 100 Compressed Natural Gas (CNG) and three liquified natural gas (LNG) stations across the country in 12 months.

Mele Kyari, the Group Chief Executive of NNPC, disclosed this at the commissioning of 12 CNG stations built in partnership with NIPCO Gas in Abuja and Lagos and said the drive to bring CNG closer to Nigerians has commenced irreversibly.

The NNPC boss said in addition to the massive deployment of CNG stations nationwide, the Nigerian oil company and its partners would also establish three LNG stations in Ajaokuta.

Source: Legit.ng