Petrol marketers have attributed the recent petrol scarcity in the country to supply challenges faced by the sole importer of the commodity, the Nigerian National Petroleum Company (NNPC) Limited.
The marketers reported that they have had to rely on depot owners to obtain petrol for their retail outlets, leading to a “slight” increase in prices across the country.
Billy Gillis-Harry, the National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), spoke on behalf of the marketers during Tuesday’s episode of Channels Television’s “The Morning Brief” breakfast program.
Long queues have been seen at filling stations nationwide, worsening traffic as the queues spill onto major roads, hindering vehicular movement. Many people have been stranded at bus stops as transport fares have doubled.
In Lagos, NNPC filling stations are selling petrol at about ₦570 per liter, while independent marketers have increased their prices from about ₦615 to over ₦650. Prices are even higher in Abuja and other states.
Gillis-Harry confirmed that while the NNPC has not changed its price, the lack of direct supply from NNPC forces marketers to obtain the product from depots, which are struggling to get products to market. Consequently, the prices are not consistent.
‘NNPC Should Explore Alternatives’
He said the NNPC was carrying out an upgrade on its platform and that should be concluded as soon as possible “but that did not stop NNPC from making alternative arrangements to make sure we have petroleum products. As far as we know, the challenges are all supply-based”.
“If there is anybody to be blamed; it should be blamed from the source of the products because retailers only sell what we are given, we do not import or refine,” he added.
Gillis-Harry said the cost of logistics was getting more complex daily because diesel used by trucks has also become scarce and expensive. He said the prices of logistics for fuel distribution across Nigeria should be subsidised by the government.
He denied the allegations that petrol marketers are taking advantage of Nigerians by hiking the prices of the commodity. He said the highest cost of petrol should not be more than ₦680.
“I would expect that the highest price in petroleum where the depots operate – Lagos, Delta, Calabar, Rivers State – should be anything between ₦620 to ₦680 maximum. And when you add all the transportation issues that should take it from state to state, you can then look at the incremental additions that can come in, and make us not to be selling at ₦1,000,” Gillis-Harry said.
Forex Shortage
The PETROAN chief said forex shortages have impeded the importation of petroleum products into the country hence limiting the full operationalisation of the deregulation of the sector.
“If we are importing products in a way that the deregulation is set for us to be able to import, which we desire to do, but we are hamstrung by the unavailability of foreign exchange to make that endeavour work. Even though we don’t want Nigeria to be an import-centred place for PMS, we need PMS to be able to work until our refineries are producing,” he said.
Gillis-Harry urged Nigerians to be patient and understanding as the current fuel shortages would be resolved.