Fuel Scarcity Looms As Oil Marketers Stop Importation, Suggest New Pump Price, NNPCL Reacts
- Nigerians will likely witness petrol scarcity once again as oil marketers have decided to stop importing
- The marketers' decision is due to the escalating landing cost of petrol amid the devaluation of the naira
- The actual fuel price has been suggested as Nigerians continue to wait for Dangote and Port Harcourt refineries
Legit.ng journalist Dave Ibemere has over a decade of experience covering Tech, Energy, Stocks, Investments, and the Economy.
Nigerians could face another fuel scarcity as licenced oil marketers importing petrol have decided to stop.
The marketers blame the high landing cost, which is now above N1,000 per litre, exceeding the current fixed prices of N568 or N617 set by the Nigerian National Petroleum Company (NNPC) Limited.
Source: Facebook
BusinessDay reports that the marketers' decision is set to create uncertainty in the market.
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A source quoted said:
“For more than four months now, no other importer has brought in the product except the NNPC Ltd."
Petrol subsidy
The marketers also noted that the government has reintroduced petrol subsidy, suggesting that petrol prices should be around N1,200 per litre, not N617.
They argued that the government's insistence on fixing the petrol price at not more than N700 means importing for marketers will only result in a loss for them.
The Punch reports there is a clash between NNPC and oil marketers over petrol prices.
NNPC speaks
Reacting, the Nigerian National Petroleum Company Limited (NNPCL) denied the reintroduction of petrol subsidy and clashed with oil marketers.
In a chat with Olufemi Soneye, the NNPC Limited Group Communications Officer said:
“NNPC Ltd emphasises it has not clashed with any party. "
He further described the Punch headline as unfortunate.
He added:
"The publication sought confirmation on the alleged subsidy reduction, to which NNPC responded that the subsidy has been entirely removed.”
Kyari on petrol import
In December 2023, speaking on the development in a statement, Mele Kyari, the group CEO of NNPC Ltd, said oil marketers withdrew from the importation of petrol because they could not manage the challenges of price fluctuations in the downstream sector.
His words:
“The oil companies withdrew because they can’t manage the oscillation and responsibility that the Petroleum Industry Act imposed on us.
"We have the market and I can assure you that we are managing this. Some marketers buy from us and sell. But there is an element that we can’t control.
"For instance, truck owners can adjust their prices, we have no control over that."
"NNPC depots are dry": Marketers speak on slight increase in petrol price adjustments
Earlier, Legit.ng reported IPMAN revealed that oil marketers could not lift products from the Nigerian National Petroleum Limited (NNPC), leading to scarcity in parts of the country.
The association said that despite NNPC not increasing its prices, marketers no longer have access to the oil company's portal as it has stopped letting them load via the portal.
Speaking in Abuja, IPMAN's national spokesperson, Chinedu Ukadike, said private depots with products are already exploiting the situation and increasing their prices due to their inability to get products.
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Source: Legit.ng
