Despite efforts by the Nigerian National Petroleum Company (NNPC) to maintain a pump price of N568-N617/litre, independent oil marketers have increased prices to N900-N1,000/litre.
In reaction, the Federal Government has vowed to shut down offending stations, citing profiteering and exploitation of Nigerians.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) claims that private depot owners are selling petrol to independent marketers at exorbitant rates, leading to high pump prices.
Spokesperson of the NMDPRA, George Ene-Ita, said the petrol price reports that the regulator gets from its officials at the depots were different.
“Our depot people see a different price because we ask them to publish the prices at the depots every day and it is not N850/litre. Our field agents at the depots give us a different figure,” he said.
Responding to reports of independent marketers in Lagos and other states selling petrol at exorbitant prices of N900 to N1,000 per litre, Ene-Ita, said the NMDPRA will take action against such outlets.
“We will shut down any filling station found selling above the approved price if we catch them,” he stated. “NNPC sets the ex-depot price for off-takers, and we work together to determine the margins. There’s no justification for prices to be that high.”
However, independent marketers argue that they are forced to buy petrol at high prices due to low supply from NNPC.
According to the marketers, the subsidized rate of around N570/litre is only available to major marketers. As a result, they then sell petrol to consumers at higher prices, ranging from N850 to N900 per litre, and up to N1,000 per litre in some remote areas.
“That is why no marketer is complaining of low margins again. This is the time for them to make money. The only issue is that getting the product is not that easy,” a source said.
“The price is high because the supply is low. It is a matter of demand and supply. The price will continue to be up, at least for now. It Is an opportunity for the filling stations to add to their margins. This is an abnormal situation. Normalcy is restored, and the regulatory authority can monitor. Can the regulator monitor anybody now?
“Imagine when you pay about N30m to NNPC to order petrol and it takes about one month to get the product. Assuming you take N30m from a bank with this interest rate, is that not a problem?’ a marketer stated.
