FG to shut non-compliant fuel stations as petrol prices reach N1,000 per litre
Many independent filling stations have now set the pump prices of Premium Motor Spirit (PMS), commonly known as petrol, between N900 and N1,000 per litre. This pricing disparity is stark compared to the Nigerian National Petroleum Company (NNPC) stations, where petrol is sold for between N568 and N617 per litre, often resulting in long queues at NNPC outlets.
As the public voices increasing concerns over the high costs imposed by independent petrol dealers, the Federal Government has vowed to take action against filling stations that are found to be charging excessively. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has announced that it will shut down any filling stations caught selling petrol at inflated rates. The NMDPRA emphasized that it is not in the interest of Nigerians for marketers to exploit the situation for profit.
Independent oil marketers have argued that they are purchasing petrol from private depot owners at prices as high as N850 per litre, which they claim necessitates their higher retail prices. However, NMDPRA spokesperson George Ene-Ita countered this, stating that the prices reported by depot officials are lower than what independent marketers are charging. He assured that any stations charging exorbitant prices will be shut down, as NNPC dictates the ex-depot prices and the margins should not result in such high retail prices.
Ene-Ita further noted that there is no justification for the significantly high petrol prices at some independent stations. He questioned if the high prices are being displayed at the pumps and confirmed that any non-compliant stations would face closure. The NMDPRA expects the price of petrol should not exceed N650 per litre.
Sources indicate that filling station owners are currently capitalizing on the fuel crisis to increase their profit margins due to the low supply from NNPC. The shortage has led private depot owners to raise their prices to as high as N850 per litre, impacting independent marketers who do not have direct access to NNPC’s lower prices.
In Lagos and other states, independent marketers are selling petrol between N900 and N1,000 per litre, while major marketers offer it for about N700 per litre. In Osogbo, Osun State, prices at independent stations range from N900 to N1,000 per litre, while in Damaturu and its surrounding areas, prices are similar. In Kano State, prices at independent stations are also high, with some reaching N980 to N1,000 per litre, leading to a resurgence of black market sales where petrol is being sold for N1,200 to N1,300 per litre.
Despite the NNPC’s assurances of improved supply, reports suggest that marketers are still receiving only half of the petrol they request, and the supply remains insufficient to alleviate the queues or stabilize prices. Additionally, it appears that the government is prioritizing the Federal Capital Territory, Abuja, to ease the situation there, with a significant portion of supplies directed to the area.
