How NNPC Is Enabling Fuel Scarcity -Source

How NNPC Is Enabling Fuel Scarcity -Source

The Nigerian National Petroleum Company Limited (NNPC), has been accused of enabling the ongoing fuel scarcity in the country.

BizWatch Nigeria understands that on Monday, June 20, 2022, fuel queues were experienced in major cities of Lagos, Abuja, and Ogun states, a development that forced motorists to stop working and commuters stranded.

A source who said NNPC has intentionally cut supplies to oil marketers disclosed that it was in a move to check them for exporting fuel to neighbouring countries.

“We had a meeting with PPMC two weeks ago where we were told that the volume of product we load is too high. So, the NNPC has reduced the volume they give to us,” the source said.

Nigeria consumes an estimated 60 million litres of fuel per day. However, findings showed that by PPMC’s record, marketers loaded as much as 106 million litres per day as of April.

“So, Pipelines and Product Marketing Company (PPMC) kept lamenting and asking us where the extra products go. Of course, we all know that they go to neighbouring countries where they are being sold at higher prices. Apart from the fact that diesel price for transporting products is on the high side, fuel is a product highly subsidised by Nigeria, and Nigerians are not allowed to enjoy the benefits,” the source was quoted as saying.

Revealing why petrol now sell for N180 and above per litre in the country, it was gathered that the diesel used in transporting the products is now very costly, as it sells between N700 and N900 per litre.

“That’s why marketers find it difficult to take products to the North. I don’t know why Lagos is experiencing scarcity. Already, buying and transporting the product to my station is at N170 per litre. So, how much will I sell? That means price has increased itself. If you go to states like Ibadan, Ekiti, Akure, it’s impossible to see the price at N165 because cost of transporting one litre is already N20. So, by the time you take it to states like Ekiti, you already have it at N182,” another source added.

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