Real Reason Independent Petrol Marketers Adjusted Pump Price

Real Reason Independent Petrol Marketers Adjusted Pump Price

Besides the Nigerian National Petroleum Company Limited (NNPCL), the limited number of independent retail outlets selling Premium Motor Spirit (PMS) petrol in Abuja yesterday raised their pump prices above the official cap of N617 per litre.

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According to The Nation, numerous filling stations had closed down, while illicit sellers with plastic containers were seen on the main highways.

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In response to The Nation’s inquiry, the Independent Petroleum Marketers Association of Nigeria (IPMAN) attributed the price hike to the unavailability of the product at the depots.

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Speaking with The Nation, the association’s National Vice President, Mr. John Ocha, pointed out that the high cost of Automotive Gas Oil (AGO) diesel was the main reason behind the scarcity.

According to him, “In Abuja, since yesterday (Tuesday) many filling stations shutdown, including A.Y. Shafa. But later in the evening, they started selling. It changed its pump to N625. I don’t know any other station that is still making sales.

“The scarcity is because many independent marketers are not selling. And even the tank farm owners, it is only Shafa that I know who is selling. I don’t know of any other one.

“The product is not much there and the cost of landing of the product is quite high because the cost of diesel is very high. A litre of diesel is above N1000.

“For you to move a truck of fuel, for instance, from Warri to Abuja, you will be talking about N300,000 or more.

“And I wonder how many people will do that expenses and still come and be selling about N600 or there about.”

“I am sure that adjustment is to accommodate the cost of landing, which the government is silent about because they (government) cannot make provision for diesel. The government cannot cushion the difference.

“The diesel cost is high and therefore that makes the landing cost of the product to be very high, especially at the very far places.”

His words: “Areas like Lagos can afford to sell at the normal price because the proximity of the source of the product is close.

“They will not incur much cost in diesel. But those who are selling like those staying in Maiduguri, Katsina, Kano Abuja and the rest of them, you cannot tell them to sell within N600 or N610 because the landing cost of the product is terribly high because of the high cost of diesel. So government is not saying anything about that.”

Ojo said: “We have about 30 days’ sufficiency; so supply isn’t an issue.  Road  conditions have however made trucking quite challenging for all marketers.”