"Depots Are Dried Up": Long Queues Return to Filling Stations as Marketers Stop Petrol Importation
- Marketers have brought fuel imports to a halt, forcing filling stations to struggle with shortages
- The marketers lament not being able to convince NNPCL to increase the price in alignment with the landing cost
- This development now leaves the NNPCL as the only entity importing petrol into the country
Long queues are suddenly returning to filling stations across Nigeria, signalling an imminent fuel scarcity in the coming days or weeks.
In locations like Okota, Ojota and Apapa in Lagos State, motorists were already queuing at some filling stations to get the product.
The current development results from seven petroleum product marketers who imported petrol approximately a month ago, ceasing their supply operations and resulting in a localized shortage in some regions of the country.
Source: UGC
As of Friday, October 6, it has been reported that the sole importer of PMS currently operating is the Nigerian National Petroleum Company Limited.
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This has resulted in shortages at numerous depots and fuel stations, causing long lines at outlets that are still able to provide fuel.
Why importers are no longer importing petrol
In May 2023, President Bola Tinubu announced the cessation of subsidy payments for petrol.
Subsequently, the commodity's price was adjusted twice to reflect its actual cost as marketers resumed importation.
Before the previous month, whenever oil marketers imported petrol, they would engage with the NNPCL to increase the price in alignment with the landing cost.
However, due to the challenging economic conditions in the country and the threats from labour unions to disrupt the economy if petrol prices were raised further, the government, acting through the NNPCL, ceased increasing the product's cost.
This decision prompted the marketers to discontinue their importation activities, leaving the sole responsibility to the NNPCL.
Marketers have noted that the NNPCL currently operates numerous retail outlets and struggles to meet their demands, let alone supply to third parties.
Only NNPCL importing petrol
Petrocam, an importer that had brought petrol into Nigeria about a month ago, is unable to sell the product due to the reinstatement of subsidy and the NNPCL's determination to maintain the current pump price.
Marketers are beginning to lament that only the NNPCL has brought in petrol in over a month, an ongoing situation that might result in the resurgence of extensive fuel queues in a matter of weeks.
A market who spoke with Punch on condition of anonymity said:
The depots are dried up. That’s a statement of fact. For more than a month now, no other importer has brought in product except the NNPC.
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The source clarified that the prevailing petrol price has been maintained due to government subsidy on the product.
He added:
It (government) has said the price should not be more than that amount. So, for over a month now, no marketer has brought in the product due to the reintroduction of subsidy.
Dantata, three other oil billionaires secure lucrative NNPC pipeline deals
In related news, Legit.ng reported that Four Nigerian tycoons are poised to gain significant financial benefits as their enterprises have clinched multi-billion-dollar contracts from the NNPC.
These firms include Oilserv Limited, A.A RANO Nigeria Limited, Macready Oil & Gas Service Company Limited, and MRS Oil Nigeria.
These lucrative contracts have been established to streamline crude oil supply to the refineries and enhance the efficient transportation of products from them.
Additionally, these companies are tasked with the responsibility of maintaining and restoring the extensive pipeline network spanning the nation.
Source: Legit.ng
