Depots Sell N220/litre, Marketers Predict N350/litre Pump Price

NNPC Denies Plans To Increase Fuel Price

Given the continuous shortage of the commodity, Premium Motor Spirit, often known as gasoline, might reach N400 per litre at the majority of gas stations by the end of this year, according to oil marketers on Tuesday. The pump price will have increased by more than 100% as a result throughout the time period.

Dealers warned that the price of gasoline would continue to soar at the pump if the shortage persisted, noting that PMS was already selling for approximately N450 per litre on the illicit market in several areas.

This occurred as drivers bemoaned the Federal Government’s and the Nigerian National Petroleum Company Limited’s steadfast silence over the ongoing crisis in the downstream oil sector.

The majority of IPMAN members, who controlled the majority of the filling stations throughout the nation, were now required to purchase PMS at about N220/litre, which is why many outlets currently dispense at about N250/litre and above, according to Chief Ukadike Chinedu, the organization’s national public relations officer.

He stressed that customers should be prepared to spend between N350/litre and N400/litre before the end of this year since the cost of the commodity has been increasing due to its scarcity and other industry-related challenges.

“I’ve always discussed with you frankly on the PMS supply situation in Nigeria. A vessel arrived Port Harcourt depot and the information we got is that it is only for major marketers. This might be happening in some other locations too,” Ukadike stated.

He added, “Where is the volume for independent marketers? We are waiting for that of independent marketers. If NNPC does not declare any volume for independent marketers, we will end up buying the product from major marketers.

“By the time we buy from major marketers, they will sell to us at about N220/litre, and you can imagine the rate which we will have to sell to consumers. So where is our quota?

“We need our quota so that we can buy at the same government approved rate. But by selling to only major marketers, they will resell to independent marketers at between N210 to N220/litre, and we don’t have any option than to buy it.”

It was reported that the lowest price which NNPC could sell petrol to marketers, assuming there was no subsidy, was N400/litre. The report also stated that the Federal Government had quietly allowed depot owners to raise the ex-depot price of petrol to about N185/litre, whereas the approved rate used to be N147/litre.

“The subsidised ex-depot rate for petrol from NNPC is about N147/litre, but tell me, which depot is selling at that rate today? I know somebody who said he bought from a depot at N182/litre. And he got it at this rate because he did bulk purchase, he bought about 20 trucks,” a major marketer, who requested not to be named due to lack of authorisation, told our correspondent.

The official added, “And he bought it from one of the major marketing companies. So, when you make a bulk purchase at N182/litre, then you can imagine what those who are buying one or two trucks will have to pay for the product.

“This means that there is hardly any depot you can go to now that you can get products for less than N185/litre. And by the time you buy at N185/litre at the depots, why won’t they sell at N200/litre and above?”

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