Fuel scarcity: Petrol to hit over N180/litre as depot owners hike price

The cost of Premium Motor Spirit, popularly called petrol, may hit or exceed N180/litre in most filling stations in coming weeks if nothing is done about a recent hike in its ex-depot price by private depot owners.

It was gathered that most private depot owners recently raised the cost of petrol from the approved N142-N145/litre price to between N162-N170/litre.

This, oil marketers said, had already caused some filling stations owned by independent marketers to start dispensing petrol at N180/litre, above the approved and regulated pump price of N165/litre.

But the Nigerian National Petroleum Company Limited, Nigeria’s sole importer of petrol, said it was not aware of the hike in price by private depot owners.

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Also, the regulator of the sector, Nigeria Midstream and Downstream Petroleum Regulatory Authority demanded independent marketers to make a formal complaint, while the oil dealers argued that they had already informed the agency.

The National Public Relations Officer, Independent Petroleum Marketers Association of Nigeria, Chief Ukadike Chinedu, told our correspondent that although the number of filling stations in Lagos and Abuja that sold petrol above the regulated rate were few, many outlets in other states currently dispense the product at N170-N180/litre.

He said, “Petrol is being sold in private tank farms (depots) at N167 to N170/litre. In fact, a friend contacted me to say that some tank farm owners were selling at N180/litre in Port Harcourt.

“So I want to tell you that fuel will be available but it will be expensive in many more areas in the coming weeks if they (depot owners) continue like this.”

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He explained that the non-supply of the products by the NNPC to the oil company’s inland depots had warranted the high cost of products at private tank farms.

“What is required is that the NNPC should supply these products to their inland depots to ensure that facilities such as Warri and Port Harcourt refineries and some depots have products so that marketers can take fuel at the approved N142-N145/litre price,” Ukadike said.

He added, “The National President of IPMAN, Debo Ahmed, has directed that all marketers should run 24 hours service and he appealed to security agencies to provide adequate security.

“So that is what we need now and I also want to let you know that the price of petrol in some filling stations is above N165/litre as approved by the government. And this is because they are not getting the product at the approved NNPC price.”

When told that the commodity was still dispensed at the approved rate of N165/litre in parts of Abuja and Lagos, the IPMAN spokesperson replied, “If you watch closely, it is mainly the major marketers and some mega filling stations.

On why the private depots were selling above the regulated price, Ukadike stated that this was what the government should address.

It was gathered on Sunday that petrol sold for N250 per litre in some filling stations in Rivers State last week mainly because independent marketers purchased the commodity above the official depot price.

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He stressed that independent marketers would definitely run at a loss if they dispensed petrol at the official N165/litre rate after purchasing it at about N170/litre.

Ukadike said, “We have. This is because we have made it public that we are no longer buying this product at a government-stipulated rate. Rather we are buying it at between N162 and N170 per litre from private depots.

Asked what could be the reason why the NNPC often supply PMS to private tank farm owners, the IPMAN official said, “When you ask them that question, they will say it is because of pipeline vandalism.