The frequent appearance of long lines of desperate motorists at filling stations in search of Premium Motor Spirit, also known as petrol, may have an impact on the Christmas and New Year’s celebrations, oil marketers warned on Friday.
It was also learned that oil marketers were now free to sell petrol at any price because the Federal Government no longer prohibited them from doing so at a regulated price.
Fuel lines have continued to form and disperse since January of this year, despite the fact that oil marketers raised the price of the commodity without seeking approval from the Federal Government or facing sanctions.
Rather than comment, the Federal Government chose to remain silent through its Nigeria Midstream and Downstream Petroleum Regulatory Authority.
Officials from the agency did not return phone calls or respond to text messages about the nationwide shortage of gasoline.
Similarly, the Nigerian National Petroleum Company Limited, the country’s sole importer of PMS, has refused to comment on the development.
However, the NMDPRA stated in its product sufficiency report on Thursday that the country had 33.17 days of PMS as of November 24, 2022. It also stated that despite widespread queues across the country, approximately 2.1 billion litres of gasoline were in stock.
However, oil marketers argued that there had been concerns about logistics and product supply by the national oil company, which was the sole importer.
They also stated that new charges in the downstream oil sector had resulted in an increase in the ex-depot price of petrol, adding that all of these concerns could cause the current fuel queues to extend beyond December.
“Recently, there have been numerous charges levied against marketers. The NNPC adds some charges to the pump price, but we were recently told to be prepared to bear freight charges and others,” said a major marketer who asked not to be named due to a lack of authorization.
“Also, pipeline charges, which were previously 50 kobo, are now N1 per litre,” the official added. These charges now compel depot owners to raise their ex-depot rates in comparison to the NNPC’s proposal.
“These and other concerns have contributed to the downstream sector’s crisis, which may last until December or even later if nothing tangible is done to address the challenges.”
When asked if the government was no longer concerned about the price of gasoline at the pump, the marketer replied, “Nobody cares how much you sell now.” That is why the NNPC ex-depot prices do not appear to be the same in all depots.
“There are some rate changes now that the NNPC cannot accommodate and must pass on to marketers to absorb.” This is why people sell at different prices.”
Chief Ukadike Chinedu, National Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria, stated that a lack of foreign exchange was also a hindrance to the supply of petroleum products.
“You interviewed me a few months ago, and I told you that fuel would sell for N200 per litre,” he said. That statement made you very uncomfortable.
“Many stakeholders contacted you in response to that publication. Some of them also called to ask why I said gasoline would be sold at that price. But I was only talking about the industry indices at the time.
“As a PRO of IPMAN in Nigeria, I can read the government’s policies on product distribution in the downstream oil sector.” You examine the dollar-to-naira exchange rate, some foreign interruptions, and the price of diesel.
“All of these are factors that definitely affect petroleum product prices because Nigeria does not produce refined products.” We cannot continue to import gasoline.
“Otherwise, we will continue to see ghost queues every month, possibly until the end of the year.” The primary solution right now is to expedite refinery repairs. We are, however, meeting and looking for immediate interventions.”
Zarma Mustapha, IPMAN’s Deputy National President, stated that the lines would most likely continue until December, but that efforts were being made to address the issues.
