On Tuesday, oil marketers reported that many depots had ceased loading Premium Motor Spirit (PMS), commonly known as petrol, due to concerns surrounding the collation of results from the general elections across the country. It was noted that filling stations operated by major marketers and the Nigerian National Petroleum Company Limited (NNPCL) were selling petrol at prices ranging from N194 to N200 per litre. In contrast, independent marketers were dispensing the product at significantly higher rates, between N250 and N340 per litre. This disparity occurred despite the Federal Government’s insistence that there had been no approval for an increase in petrol prices and its demand that PMS should not be sold above the approved rate.
Chief Timipre Sylva, the Minister of State for Petroleum Resources, emphasized that the government would not secretly approve any increase in PMS prices without consulting relevant stakeholders. He stated, “The President has not directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority or any agency to increase the price of fuel. This is not the time for any increase in the pump price of PMS.” NNPCL retail stations are believed to be adhering to the approved price, with many selling petrol at N194 or N195 per litre. However, independent marketers have been charging significantly more, a situation attributed to the fact that many depots had stopped loading PMS due to the anxiety surrounding the elections and the ongoing collation of results by the Independent National Electoral Commission.
Mohammed Shuaibu, Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN) in Abuja-Suleja, explained that the lack of loading at depots had led to many stations across the country remaining closed. He noted, “As it is now, the depots are not loading, and there are no receptions. This is due to apprehension caused by the elections.” Shuaibu added that many people were waiting for the announcement of election results due to fears of potential crises that could impact their stations or trucks. He pointed out that the situation had created an opportunity for some to profit from the increased prices.
Shuaibu also highlighted that trucks belonging to major marketers had not been transporting products from Lagos to other locations as they typically would before the elections. He stated, “Trucks that move PMS, belonging to major marketers, are not coming into Abuja and many other locations as expected. I inquired from them, and they said it is because of the elections, and that they are afraid. They want to see the outcome of the elections.”
Billy Gillis-Harry, President of the Petroleum Retail Outlet Owners Association of Nigeria, echoed these concerns, stating that marketers were struggling to obtain products for dispensing, which had led to private depots selling above the government-approved prices. He questioned, “Are there even products? Are marketers seeing the products to buy, before talking about dispensing it to consumers?” When informed that the NNPCL had recently announced sufficient product availability until March 2023, Gillis-Harry responded, “Has NNPCL ever told you that it doesn’t have enough products?” Regarding the high prices at independent filling stations, he mentioned that PETROAN required members to submit documentation of their product purchases to ensure compliance with the appropriate pricing band.
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