Marketers Give Date Fuel Scarcity Will End, Filling Stations Sell at New Pump Prices

• IPMAN has provided insight into the end of the current fuel scarcity and claims the product is not available
• The marketers believe that it will take at least 2 weeks to see the end of the current scarcity across the country
• The Nigerian National Petroleum Company Limited, NNPCL continue to insist that it has adequate stock of the product

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has said that the current petrol scarcity will continue for at least two weeks.

Chinedu Ukadike, IPMAN's Public Relations Officer, disclosed that the product is not available in the country.

Explaining the current challenges, Ukadike noted that petrol scarcity is due to the challenges of sourcing the product because most refineries in Europe are undergoing turnaround maintenance.

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His words:

"Importation bottlenecks behind scarcity"

Vanguard reports that he further blamed the acute shortage in supply on importation bottlenecks and the slow pace of marketers' licence renewal by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA.

According to him, only 1,050 marketers out of 15,000 have had their licences renewed by NMDPRA.

He added:

:“The situation is that there is no product. Once there is a lack of supply or inadequate supply, what you will see is scarcity and queues will emerge at filling stations.

“On the part of NNPCL, which is the sole supplier of petroleum products in Nigeria, they have attributed the challenge to logistics and vessel problems.

“Once there is a breach in the international supply chain, it will have an impact on domestic supply because we depend on imports. I also have it on good authority that most of the refineries in Europe are undergoing turnaround maintenance, so sourcing petroleum products has become a bit difficult.

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“NNPC Group CEO has assured us that there will be improvement in the supply chain because their vessels are arriving. Once that is done, normalcy will return. This is because once the 30-day supply sufficiency is disrupted, it takes two to three months to restore it.

“We expect that by next week or so, NNPC should be able to restore supply and with another week, normalcy should return”.

Petrol sells at new prices

Findings show that several filling stations across the country have adjusted their pump prices in reaction to the scarcity.

In Lagos, some filling stations sell at N650 per litre, while in states such as Abia, it costs N700 to N750 per litre.

The scarcity is even worse in the northern part of the country, with reports of the black market selling a litre of fuel for as high as N2,000.

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Filling stations, vendors sell fuel at new price despite NNPC assurance as scarcity persists

Tinubu reacts to reduced diesel prices.

Earlier, Legit.ng reported that President Bola Tinubu commended Dangote Oil and Gas Limited for slashing the price of Automotive Gas Oil (AGO), also known as diesel, from N1200 to N1000.

The reduction was effected after the initial decrease from N1,650 to N1200 about three months ago.

Tinubu said the price review, which represents a 60% drop, would impact the prices of various goods and services.

Source: Legit.ng