Motorists queuing at a filling station in Lagos. Photo: Stanley Ogidi
The Federal Government, through the Nigerian National Petroleum Company Limited (NNPCL), has increased the supply of Premium Motor Spirit (PMS), commonly known as petrol, to independent oil marketers in an effort to prevent a further rise in pump prices. Oil marketers confirmed on Friday that the national oil company responded to their request for larger volumes of PMS for independent filling stations, thereby reducing the widening price disparity. They told our correspondent that NNPCL’s action has improved product availability at retail outlets operated by independent marketers and that the company has pledged to maintain this supply.
On Wednesday, The reported that oil marketers warned of an imminent fuel‑price hike due to poor supply from NNPCL. They cautioned that incomplete deliveries to many stations would further widen the price gap. Dealers affiliated with the Independent Petroleum Marketers Association of Nigeria (IPMAN) said the recent distribution of PMS had been uneven, risking scarcity and higher retail prices. “Here in Port Harcourt, for instance, we have Oando and NNPC Retail, and they have products in some private depots. Master Energy and Liquid Bulk also have products, but there is no volume for independent marketers,” said IPMAN’s National Public Relations Officer, Chief Ukadike Chinedu. He added that independent marketers had no volume in any of these depots while over 3,400 tickets were pending at the NNPC Retail account. “This new system forces independent marketers to beg for petroleum products from NNPC Retail. The lopsided distribution will continue to cause scarcity and price disparity in retail outlets.”
When asked on Friday whether NNPCL had heeded the marketers’ demands to avert the price hike, Ukadike answered affirmatively. “The NNPCL supplied 13 million litres and informed us about it. This cushions the effect of the poor supply in the affected areas. They also promised to ensure that marketers receive products back‑to‑back.” He assured PMS consumers that, with a sustained adequate supply from NNPCL, the cost of petrol at independent stations would remain aligned with the government‑approved price.
NNPCL remains the sole importer of PMS into Nigeria, a role it has held for several years. Other marketers have stopped importing the commodity because of difficulties accessing US dollars for PMS imports. Consequently, they now purchase PMS from NNPCL at a subsidised rate for onward distribution nationwide. “That is the situation of things now. The recent supply of PMS has really helped make the product available in many retail outlets across the country. With enough supply, unnecessary price disparities will be addressed,” Ukadike said.
On Thursday, The also reported that daily petrol consumption in Nigeria has risen to about 80 million litres, pushing the subsidy on the commodity to an estimated N484 billion per month. An analysis of PMS weekly evacuation/dispatch data from 4–10 March 2023, obtained from NNPCL, showed a total evacuation of 558.83 million litres during that period, translating to an average daily consumption of 79.83 million litres. Around mid‑last month, NNPCL Group Chief Executive Mele Kyari said the firm was pumping about 66 million litres of petrol daily into the market, spending roughly N202 on each litre consumed nationwide.
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