The premium motor spirit, also known as petrol in the nation, is sold by private depot owners for an “unsustainable” price, according to the Independent Petroleum Marketers Association of Nigeria (IPMAN).
Speaking on Channels Television’s Sunrise Daily on Thursday, the Deputy National President of IPMAN, Zarama Mustapha, disclosed that the private depots purchase gasoline from the sole importer of the good, the Nigerian National Petroleum Company (NNPC) Limited, at the approved price of N148 per litre.
However, selling it to independent merchants for as much as N195 to N210 is not viable.
“Marketers purchase gasoline from NNPC depots at the permitted rate of N148 per litre, but the firm lacks the necessary storage space to meet their demands; as a result, the latter turn to private depot owners.
The fundamental problem is that private depots don’t sell the goods to independent marketers at a price set by the mainstream, downstream regulatory authority but instead collect the goods at the allowed price.
He said, “You cannot purchase a thing for N195 to N200 and expect to sell it for N175.”
According to the IPMAN representative, depot owners use factors like the expense of shipping the product from the mother vessel to their depots and the strengthening of the currency as justifications for price increases.
Mustapha bemoaned the chaos at most Lagos depots, where marketers take three days to load refined gasoline that they are only required to lift in three hours.
Mustafa encouraged the NNPC to work with depot owners to sell the goods to marketers at the suggested price, arguing that the average person is the one who will be paying the price.
Vehicle owners have had a difficult time buying gasoline from gas stations for weeks, particularly in Lagos and Abuja.
While most stores are closed, the handful that is open offer the essential good for up to N250 per litre instead of the standard N169 per litre.
Long, torturous lines of drivers and business owners jostling for petrol at the few open filling stations have resulted from the supply crisis, with some turning to the illegal market. Traffic on key routes has also gotten worse as a result of the issue, as drivers often block at least one lane to join lines at gas stations.
