Connect with us

Business

Fuel scarcity worsens as depot prices surge by 31%

Published

on

Spread The News

 

 

The fuel scarcity in Lagos, Ogun, and other states intensified as independent marketers began purchasing fuel from private depots at N780 per litre, up from N595 per litre—a sharp 31% increase.

Chief Chinedu Ukadike, Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria (IPMAN), explained that the price hike is driven by current supply and demand dynamics in the domestic market.

Despite these challenges, Chief Ukadike expressed optimism about an improvement in the situation. He noted that more trucks have been dispatched from depots recently, although independent marketers continue to source fuel at higher rates.

“NNPC has started releasing products to independent marketers,” Ukadike said. “The queues you see now are mostly temporary, appearing in the morning and disappearing by evening. This pattern will continue until supply stabilizes and becomes sufficient.”

He added that the ongoing rainy season has further complicated distribution, slowing the movement of trucks to northern regions. However, he believes the situation will ease within a few days.

READ ALSO: Why fuel scarcity persists – NNPC

The six-week-long petrol distribution challenges have led to persistent long queues at filling stations across the country, with many marketers raising their pump prices.

In Abuja, while queues have slightly reduced in central areas, supply remains tight in other parts of the Federal Capital Territory, with pump prices ranging from N685 per litre at major outlets to N950 per litre at independent stations.

Chief Ukadike also highlighted the rising transportation costs, which have significantly impacted fuel prices.

“We sell at prices that allow us to cover costs and make a small profit. Transportation costs have skyrocketed, with the cost of delivering products rising from N800,000 to N3.5 million due to the high cost of diesel and truck maintenance,” he explained

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published.

Trending