FG disowns plans to hike petrol prices, as marketers sell it at N235/litre

FG disowns plans to hike petrol prices, as marketers sell it at N235/litre

Despite independent marketers raising the price of petrol from N180 to N235 per litre, the Federal Government has denied any plans to raise the pump price.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, announced this in a statement, while also claiming that the country has 34 days of supply in stock, despite visible signs of shortage throughout the country.

“This advisory addresses speculations on the price and availability of Premium Motor Spirit, PMS. The Authority wishes to inform the general public that the Federal Government has no intention of increasing the price of PMS during this period.

The Nigerian National Petroleum Corporation Limited (NNPCL) has imported PMS with current stock levels sufficient for 34 days.

Consequently, Marketers and the general public are advised to avoid panic buying, diversion of products, and hoarding.” the statement in part reads

The agency assured the public that it would continue to monitor the supply and distribution of all petroleum products nationwide, especially during the Yuletide.

The Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria, IPMAN, Chinedu Ukadike, blamed the scarcity of petrol on supply shortage.

He said most filling stations were out of stock because the product was not available at government-owned depots operated by the Pipelines and Products Marketing Company, PPMC. He attributed the hike in the price of the product to the increase in cost of purchasing it at the privately-owned depots.

He also faulted the claims that the country has 34 days of sufficiency, saying “products do not hide, if it is available, marketers will have it”.

“There is an inadequate supply of petroleum products by PPMC. The government-owned depots are empty and independent marketers have had to rely on private depots for supply at exorbitant prices. So we have many people chasing the small quantity that is available. It is the simple law of demand and supply playing out.

The distribution channels do not favour independent marketers and the business environment is tough on us,” he stated.

Ukadike explained that independent marketers were loading at the private depots at N215 per litre, instead of the government-approved price of N145.60.

“If you load at that rate, then add the cost of transportation and other logistics, it is impossible to sell at the price approved by the government. So at the independent filling station, the pump price ranges from N230 to N240.

That is why you have very long queues at NNPC retail stations and virtually no queues at the few independent stations selling the products.” he said

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