Experts Speak on Unauthorised Fuel Price as Black Marketers Enrich Pockets

• Selling Premium Motor Spirit (petrol) in jerrycans has been a regular practice in Nigeria
• Experts claim that this is an unlawful petrol trade that demonstrates the government's lax regulation
• Some black marketers usually close to filling stations charge as much as N1000 per litre

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

In Nigeria, selling Premium Motor Spirit (petrol) in jerrycans has grown commonplace, particularly when the product becomes hard to get in authorized retail outlets. Experts claim that this is an unlawful petrol trade that demonstrates the government's lax regulatory actions.

BusinessDay investigations have revealed that black marketers, who are primarily positioned near filling stations, sell their gasoline for far more than what the stations sell it for, even though filling stations sell it for between N617 and N690 per litre.

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For instance, black marketers in the federal capital territory of Garki, near Lokogoma Junction and the NNPC towers, charge N1000 per litre.

The uncontrolled sales trend has persisted and has developed into a means of escape for drivers who might not want to stand in lengthy lines at gas stations.

Petrol trading more complicated

Oil and gas production engineer Etulan Adu stated that street petrol trading has become complicated and has both positive and negative effects. It gives Nigerians easy access to limited fuel, which is frequently hard for them to obtain through the official channels.

“The legality of such operations contravenes Nigeria’s downstream petroleum marketing regulations. It’s the responsibility of legitimate marketers with licenses from regulatory authorities such as NUPRC and NMDRA that operate and sell petrol.

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“Unfortunately, the long queues and lack of spread of petrol stations in rural areas would continue to keep the patronage of black marketers ongoing for now. Despite the benefits of black marketers of petrol to the general public, on the other hand, there are concerns about the potential risks they pose, including contributing to insecurity, price manipulation, and the circumvention of regulatory measures,” he said.

He added that small-scale licensing and control of such activities will be necessary to guarantee safety and quality standards are followed. He clarified that although regulating black marketers presents a significant challenge to government authorities, it is not an impossible undertaking. Perhaps a small-scale petrol sales license for vendors and monitoring systems.

In order to effectively control and guarantee that the problem of black marketers is taken seriously for the safety of the general public, he emphasized the importance of effective collaboration between law enforcement agencies, government regulatory departments, industry players, and the informal sector.

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Ayodele Oni, a partner at Broomfield LP, also spoke with BusinessDay and attributed the actions of black marketers to lax law enforcement.

Oni claims that it is against the law to peddle gasoline for sale.

“Under the provision of section 174 of the Petroleum Industry Act 2021, any person that intends to engage in the distribution, marketing or retail trading of petroleum products is expected to have a licence issued by the Nigeria Midstream and Downstream Regulatory Authority (the “Authority”).

"Section 174 (5) of the PIA provides that any person who engages in operation without a licence or permit commits an offence and is liable on conviction to imprisonment.

Filling stations adjust pump prices

Legit.ng reported that the Nigerian National Petroleum Company (NNPC) Limited filling stations are selling fuel at N568 per litre amid fuel scarcity.

This is in contrast to independent marketers' filling stations, which sell at between N750 and N950 per litre.

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NNPC Retail Ltd has over 900 stations ranging from Affiliate Stations, Mega Stations, and Standard Stations to Leased Stations, Ultra-modern Stations, and Floating Stations.

Source: Legit.ng