Fuel Scarcity Looms as NNPC Issues New Directive to Marketers on Refund, New Price
- NNPC has asked oil marketers to merge their old orders with new ones following the removal of the petrol subsidy
- NNPC said those who have placed an order before the removal of the subsidy could ask for a refund if they are unable to meet the new price
- The situation, analysts say, might lead to another bout of petrol scarcity in Nigeria
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Nigerians may experience another petrol subsidy as NNPC's fresh Circular issued to oil marketers on how much they will pay to get petroleum products unsettles many.
The development comes two weeks after the federal government announced the removal of the petrol subsidy.
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The new price makes it hard for new supplies
The Punch reports that NNPC Retail released a circular on Sunday, June 11, 2023, asking marketers to consider merging their old orders carrying the old fuel price to buy a truck of 45 million liters of petrol.
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It was gathered that marketers had ordered one petrol truck for about N7.7 million before removing the subsidy.
The new Circular by the company asked marketers who may have ordered three trucks at N7.5 million N171 per liter, being the old price, to merge their orders or ask for a refund.
The Circular reads:
"Following the complete deregulation of PMS, NNPC Retail has made the following options available to help customers manage the impact of the additional cash flow requirement: Marketers now have the option of consolidating pre-paid self-owned tickets for new tickets in line with the revised price. I want to ask if you would be interested in engaging their respective NRL Depot representatives for guidance on initiating this option.
"Also, there is an option for a cash refund. Marketers interested in initiating this option should send an official request addressed to the MD NNPC Retail. The request should include evidence of payment and order details (RRR number, Sales quotation number, and Meter ticket number). Upon receipt of the official request and the above-supporting documents, your refund request will be processed,"
Oil markers confirmed the development to journalists and said the situation might lead to the country'scountry's scarcity of petroleum products.
It may be difficult for some marketers to raise the required sum to order products.
Marketers struggle to raise capital for new supplies
Vanguard reports that before the deregulation of petrol, the ticket to load at the depot averaged about N8.1 million per truck but has increased by over 169% to N21.8 million.
Marketers have complained that raising such capital at short notice takes a lot of work.
Analysts believe the new development may lead to a need for more petroleum products.
NNPC says private companies can start fuel import from June
Legit.ng reported that the Group Chief Executive Officer of Nigeria National Petroleum Company Limited (NNPC), Mele Kyari, has stated that private firms can begin fuel import in Nigeria.
The NNPC boss revealed this and said the company plans to end crude oil swap contracts and switch to cash payments for refined products.
Kyari stated this during an interview with Reuters on Saturday, June 3, 2023.
Source: Legit.ng
