In a shocking development that has rattled the Nigerian energy sector, independent oil marketers have defied the Nigerian National Petroleum Company (NNPC) and hiked petrol prices to between N900 and N1,000 per litre.
This defiance comes despite the NNPC's efforts to maintain a regulated pump price range of N568 to N617 per litre.
The Federal Government, in response, has vowed swift action against any petrol stations engaging in what it calls "profiteering" and "exploitation" of the Nigerian public.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has threatened to shut down any filling stations caught selling petrol above the approved price.
George Ene-Ita, the spokesperson for the NMDPRA, highlighted the discrepancy in pricing between what the private depot owners are charging independent marketers and what is being reported at the depots.
"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," Ene-Ita explained.
"Our field agents at the depots give us a different figure."
Ene-Ita's statement comes amid widespread reports of independent marketers in Lagos and other states selling petrol at prices significantly above the approved rate.
“We will shut down any filling station found selling above the approved price if we catch them,” he warned.
“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, the independent marketers argue that their hands are tied. They claim that they are being forced to buy petrol at inflated prices due to a low supply from the NNPC.
According to them, the subsidized rate of around N570 per litre is only available to major marketers, leaving them no choice but to sell at higher prices to cover their costs and make a profit.
One marketer, speaking to The PUNCH, expressed frustration over the supply chain issues: “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.”
The marketer further elaborated on the challenges faced by independent sellers, stating, “Imagine when you pay about N30 million to NNPC to order petrol, and it takes about one month to get the product.
Assuming you take N30 million from a bank with this interest rate, is that not a problem?”
The current situation has created a perfect storm of high demand and limited supply, driving prices up further.
With the government threatening to shut down non-compliant stations and independent marketers pointing fingers at supply issues and depot prices, the tension in the sector is palpable.
As Nigeria grapples with this fuel crisis, all eyes are on the NMDPRA and the NNPC to see if they can restore normalcy and ensure that Nigerians are not unduly burdened by exorbitant fuel prices.
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