“In response to soaring petrol prices reaching N1,000 per litre, the Federal Government plans to shut down filling stations that fail to comply with regulations, aiming to stabilize the fuel market

Several petrol stations run by autonomous oil marketers have currently placed pump prices of Premium Motor Spirit, commonly referred to as gasoline, at a range from N900 to N1,000 per litre.

The cost of retail products at Nigerian National Petroleum Company-operated outlets appears to be of little concern to the owners. Petrol prices at NNPC stations vary from N568 to N617 per litre, resulting in frequent queues.

Nigerians have expressed their worry about the exorbitant prices charged by independent petrol dealers for PMS. In response, the Federal Government has promised to close any filling station that sells PMS at unjustifiable rates.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority announced that it is not in the best interest of Nigerians for marketers to exploit sales of PMS.

Since the previous week, independent oil marketers have been acquiring petrol from private depot owners at rates reaching N850 per litre. They attribute the increased pump prices to this situation.

George Ene-Ita, spokesperson of the NMDPRA, contested that the reports on petrol prices received by the regulator from officials at depots were dissimilar.

According to him, the prices displayed at our depots are different as we have instructed our depot staff to update them daily and they do not reflect N850 per litre. However, the figures provided by our field agents differ from those seen at the depots.

The NMDPRA official stated that independent marketers in Lagos and various other states selling their products at rates of up to N900 and N1,000/litre would be penalized if caught.

Ene-Ita stated that if they acquire these outlets, their only course of action would be to close them down since NNPC is the sole company responsible for importing petroleum products and dictates ex-depot prices to interested parties. They collaborate in determining margins and therefore a high margin seems unlikely.

According to the NMDPRA official, reconciling the expensive petrol being sold by independent marketers was impossible for their agency.

“Are these stations showing the high prices on their pumps?” Ene-Ita inquired.

Our correspondent confirmed that the regulatory agency’s official stated, “We will shut down these outlets once we acquire them. NNPC informs us of their sales and it is impossible for pump prices to exceed N650/litre.”

The spokesperson for NMDPRA issued a warning to marketers engaged in profiteering, urging them to cease their actions. The agency made it clear that they would not tolerate any form of cheating towards Nigerian consumers and will take necessary measures against such operators.

Our correspondents’ research has indicated that marketers are experiencing increased profitability due to the ongoing fuel crisis in the country.

It has been reliably reported that the owners of filling stations have taken advantage of the situation where regulators are unable to enforce a specific price in order to increase their profit margins.

It was reported that private depot owners increased the price of petrol to as much as N850/litre due to limited supply from NNPC.

Independent marketers purchase from the depots as they are unable to obtain fuel directly from NNPC at the same rate of N570/litre reserved for major marketers.

RAED ALSO: NNPCL clarifies purported plans to raise petrol prices

The independent marketers vend a liter of petrol to motorists and other Nigerians at varying rates, which can range from N850 to N900 or even hit the top-notch pricing of N1,000 in distant regions. In response, they receive compensation for their services.

This is the moment for marketers to earn profits because they are not suffering from low margins anymore. However, obtaining the product remains a challenge at present.

Due to low supply, the price is steep. This situation solely depends on demand and supply dynamics which implies that it may persist for some time. Filling stations can utilize this chance to increase their profits since such circumstances are unusual. However, regulators must intervene once normalcy returns in order to monitor if anyone engages in unethical practices regarding prices at present when monitoring prospects seem bleak?

A marketer raised a concern, “Isn’t it problematic to borrow N30m from a bank with interest rates in order to pay NNPC for petrol orders that take up to one month before delivery?”

Our correspondent received confidential information from sources at the Lagos depot that despite promises of returning to regular supply last Wednesday, NNPC is still implementing fuel rationing.

On Monday, it was discovered that marketers could only acquire half the amount of metric tonnes they had submitted bids for.

According to a depot operator, while there has been some improvement in the situation, the supply is still insufficient to reduce queues and ensure that the product is accessible for all Nigerians.

Another insider revealed that the Federal Government has decided to give priority attention to addressing the fuel scarcity in filling stations located within the Federal Capital Territory, Abuja.

“The situation in Abuja’s queue is slightly getting better. Around 70% of the trucks are heading towards this destination as instructed by the operator at the depot,” disclosed a source.

Adeyanju, the manager of a filling station in Ogun State, refuted allegations that marketers were hoarding fuel by stating that it would be illogical since gasoline eventually evaporates.

According to the manager, PMS has a tendency to evaporate if stored for too long. Therefore, even if 33,000 litres are initially poured into a tank and left unused for some time before transportation is required, only around 31 or 32 thousand litres may be available due to natural evaporation. The manager emphasized that no fuel operator would want this loss of product and therefore would not hoard fuel despite current profitable conditions in the market.

He commented that even a miracle couldn’t eliminate the queues in this upcoming week, and urged NNPC to increase their supply.

Filling stations owned by independent marketers in Osogbo, Osun State, sold petrol on Monday at prices that varied from N900 to N1000 per litre.

Nonetheless, petrol was being sold for N700 per litre by only a small number of prominent marketers.

The significant increase in fuel prices has compelled commercial intra-city bus operators to elevate their fares by 50 percent, resulting in numerous filling stations across the metropolis becoming inaccessible to customers.

In Damaturu and its neighboring regions, petrol sold by independent dealers is priced between N980 and N1000 per litre.

A comparable scenario has unfolded in certain regions of Lagos and Ogun states, where independent fuel marketers have set petrol prices as high as N950 or even N1,000 per litre.

Despite having adequate fuel supplies, many marketers in Kano State have shown hesitance in operating their filling stations, leading to a thriving black market for fuel.