Why petrol marketers may adjust pump prices as depot owners hike costs

• Petrol marketers may adjust their pump prices again following an increase in the ex-depot price of PMS
• Queues for fuel resurfaced in parts of the country over the weekend as oil marketers say depot owners have refused to sell at the previous rate
• IPMAN President Abubakar Maigandi disclosed that independent marketers are in talks with NNPC to get supplies

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

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.

Petrol stations to adjust prices as depot owners hike costs Credit: Bloomberg/Contributor
Source: Getty Images

Motorists form long queues at NNPC stations

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. 

Independent oil marketers, who operate over 70% of filling stations across Nigeria, blamed the scarcity on private depots' hike in the ex-depot price of petrol.

Punch reports that the National President of Independent Petroleum Marketers of Nigeria (IPMAN), Abubakar Maigandi, disclosed that private depot owners had increased the depot prices of petrol to N710 per litre. In contrast, the pump price of the commodity at NNPC stations sells for N617.

He disclosed that the situation is due to how the depot owners have been selling their products, making it difficult for independent operators to get and sell the product in Abuja and other states.

Marketers blame scarcity on an increase in depot prices

He explained that due to the number of filling stations operated by IPMAN members, any change in the supply of petroleum products to its members would lead to fuel queues because significant marketers and NNPC stations were fewer.

According to the IPMAN boss, instead of buying the product from private deports, the association has been negotiating with NNPC, and the company promised to start allocating them.

NNPC debunks alleged debt to marketers

The development comes as a report alleged that the Nigeria National Petroleum Company Limited (NNPC) owes marketers about $6 billion in backlog payments.

The report disclosed that the situation has led to some marketers stopping petrol imports and sales.

However, NNPC spokesperson Olufemi Soneye debunked the report, calling it fake news.

He said the report failed to mention that the NNPC's marketers allegedly owe the sum.

NNPC opens up on forcing customers to buy lubricants

Legit.ng previously reported that NNPC has said Nigerians are not required to buy lubricants or engines as a condition for purchasing or dispensing fuel at its retail stations.

The NNPC also said it did not ask any of its attendants to demand from users to buy lubricants or engine oil as a condition for purchasing fuel.

NNPC’s Chief Corporate Communications Officer, Olufemi Soneye, disclosed this in a statement on Sunday, June 30, 2024.

Source: Legit.ng