The Federal Government, via the Nigerian National Petroleum Corporation Limited, has boosted the supply of Premium Motor Spirit, commonly termed petrol, to independent oil marketers, in an attempt to forestall a further jump in the pump price of the commodity.
Oil marketers stated on Friday that the national oil corporation responded to their calls for an increase in the amounts of PMS delivered to independent filling stations, to reduce the rising difference in the cost of fuel.
They informed reporters that the decision by NNPCL has now increased the availability of items at retail shops managed by independent marketers, adding that the national oil company had committed to continue this.
On Wednesday, it was revealed that oil marketers warned that there might be an immediate spike in gasoline prices owing to the inadequate supply of the commodity by NNPCL.
They worried that the discrepancy in the pump price of fuel will further expand owing to the incomplete delivery of items to numerous filling stations.
According to the article, dealers under the auspices of the Independent Petroleum Marketers Association of Nigeria, stated there was a skewed pattern in the distribution of PMS recently, warning that this would produce shortages and aggravate the price differential in retail outlets.
“Here in Port Harcourt, for instance, we have Oando and NNPC Retail, and they have items in certain private depots. Master Energy and Liquid Bulk also offer goods, but there is no volume for independent marketers,” the National Public Relations Officer, IPMAN, Chief Ukadike Chinedu, noted.
He said, “Independent marketers have no volume in all these depots and we have over 3,400 tickets sitting and waiting at the NNPC Retail account.
“This new method is now making independent traders beg for petroleum goods from NNPC Retail. The unbalanced distribution pattern will continue to product shortages and price discrepancies in retail outlets.”
Yet when questioned on Friday if the NNPCL had listened to the requests of oil marketers, to prevent the looming price rise, Ukadike answered in the positive.
He stated, “The NNPCL delivered 13 million litres and told us about it. This is to buffer the impact of the low supply in the affected regions. They also guaranteed that they would ensure that marketers are provided items back-to-back.”
The IPMAN official informed PMS customers that with the sustainability of enough supply by NNPCL, the cost of petrol at filling stations managed by independent marketers will always circle the government-approved price.
NNPCL is the exclusive importer of PMS into Nigeria and this has persisted for many years. Some marketers discontinued importing the item because of the difficulties in acquiring the United States currency for PMS purchases.
The marketers now obtain the item from NNPCL at a reduced rate, for onward distribution to customers throughout the nation.
“That is the status of things currently. The latest supply of PMS has significantly helped in making the product accessible in various retail locations throughout the nation. Hence, with appropriate supply, the problem of unjustified pricing differences will be addressed,” Ukadike remarked.
On Thursday, it was exclusively revealed that the use of fuel in Nigeria has climbed to approximately 80 million gallons daily, driving up subsidy on the product to an estimated N484bn monthly.
The study noted that a review of PMS weekly evacuation/dispatch data from March 4 – 10, 2023, received from NNPCL, revealed that a total of 558.83 million litres of petrol was evacuated over the period, equivalent to an average daily usage of 79.83 million litres.
About a mid-last month, the Group Chief Executive, NNPCL, Mele Kyari, claimed over 66 million litres of petrol was pumped daily into the market by the oil corporation, while the company was paying roughly N202 on every litre of PMS used throughout the nation.
