Seven oil marketers who had imported Premium Motor Spirit, commonly known as petrol, approximately a month ago, have ceased their imports, resulting in localized fuel shortages across some regions of the country.
As of now, the sole importer of PMS is the Nigerian National Petroleum Company Limited (NNPCL), causing many depots and filling stations to run dry, leading to long queues at fuel dispensing outlets.
Petrocam, the last private dealer to import petrol into Nigeria, is unable to sell due to the reinstatement of subsidies on the product and the NNPCL’s refusal to raise the pump price.
Before last month, oil marketers used to negotiate with the NNPCL to raise the price in line with the landing cost when they imported the product.
This practice changed after President Bola Tinubu announced the end of subsidy payments on petrol.
At that time, the cost of the commodity increased twice to reflect the actual pump price, prompting marketers to resume importation.
However, due to the challenging economic conditions in the country and threats from labor unions to disrupt the economy if petrol prices were increased again, the government, through the NNPCL, stopped raising the product’s cost.
Consequently, marketers discontinued their imports, leaving only the NNPCL to handle the imports.
Marketers report that depots are now depleted, and for over a month, no other importer has brought in the product except the NNPC.
The National President of the Natural Oil and Gas Suppliers Association of Nigeria, Benneth Korie, confirmed the depletion of depots’ stocks.
Regarding whether other marketers were importing the product alongside the NNPCL, it was mentioned that several marketers, including Emadeb, Nipco, and Petrocam, brought in products, not solely the NNPC.
However, they were not breaking even because the NNPC was no longer adjusting its price when marketers imported products.
Despite the current landing cost being approximately N720/litre, the NNPC continued selling at prices between N580 and N617, depending on the location, due to government subsidies.
The current petrol price is being sustained by government subsidies, and for over a month, no marketer has imported the product due to the reintroduction of subsidies.
Regarding whether the NNPC has sufficient products to meet the country’s needs since marketers have stopped imports, it was noted that the NNPC also faces challenges. With an increased number of retail outlets, even some NNPC stations don’t have products, limiting their ability to supply third parties.
The situation has already led to queues in Lagos, and if it continues, it could result in massive queues nationwide.
Regarding the way forward, the oil marketer emphasized that the government should plan strategically, as subsidy has effectively been back for over a month, and measures need to be taken.
Additionally, the NNPCL refuted claims of planning to increase the pump price of petrol and assured customers that there were no intentions to do so, urging customers to purchase quality products at affordable prices at NNPC Retail stations nationwide.
