The average price of a litre of the premium motor spirit (PMS), also known as petrol, reached N1000 at some filling stations and black markets in Lagos on Monday as scarcity spread to various parts of Nigeria.
In Isolo, Ejigbo, Igando-Ikotun, Bariga and Ojodu local development areas (LCDAs) in Lagos, filling stations sold between N830 and N900 per litre. Our correspondents found three filling stations selling at N1,000/l at Egbe-Idimu, Ojodu and Ojokoro LCDAs.
Black market retailers leveraged the opportunity to hike their prices to N1,200/l to N1,400/l.
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“Here we go again, struggling to buy a litre of petrol at N1,200 without any clear explanation from the government or the Nigerian National Petroleum Company (NNPC),” said Cynthia Odume, a lawyer.
In Abuja, petrol stations sold between N617/l and N980/l.
In Kubwa, a litre of petrol was sold between N670/l and N690/l.
However, black marketers sold a 10-litre gallon of petrol at N10,000.
“I spent over an hour here to buy petrol. We have been facing petrol scarcity for three years now, yet the government cannot explain why this situation has persisted,” Joe Amali, a civil servant, told BusinessDay on the phone.
“We are paying more for less,” he added.
Many retail stations of the Nigerian National Petroleum Company (NNPC) Limited remained locked, even though Mele Kyari, group chief executive officer of the company, recently announced that the company has reached a new peak in crude oil production, higher than in the last three years.
Amid the ongoing fuel scarcity across Nigeria, the latest report from the National Bureau of Statistics (NBS) has revealed a significant rise in the average retail price of petrol, which reached N770.54 per litre in July 2024.
The NBS’s PMS Price Watch report highlighted a sharp 28.35 percent increase in petrol prices compared to last year when the average price stood at N600.35/l. The report also noted a 2.72 percent rise from June 2024’s average cost of N750.17/l.
Regional disparities were also evident in the NBS data, with northern states experiencing the highest increases in petrol prices.
Katsina State recorded the steepest average retail price at N950.00/l, followed by Jigawa at N903.08/l and Benue at N846.95/l.
In contrast, Kwara, Edo, and Akwa Ibom States had the lowest prices, at N650.00/l, N669.75/l, and N673.75/l, respectively.
The report further indicated that the North-West zone had the highest average retail price of N820.10/l, while the South-South zone had the lowest at N678.30/l.
The surge in petrol prices has exacerbated the already dire fuel scarcity situation, particularly in Lagos and Abuja, where long queues at filling stations have become a common sight.
Despite assurances from the Nigerian National Petroleum Company Limited (NNPCL) that efforts are being made to restore normalcy, the situation has deteriorated.
IPMAN blames situation on panic buying
Abubakar Maigandi, president of Independent Petroleum Marketers Association of Nigeria (IPMAN), in an interview with Arise TV on Monday, attributed the situation to panic buying.
Maigandi said, “There was a protest for almost seven days and most of the depots were not loading. During the protest, we informed all our marketers to sell their products in 24 hours so that there will be no side effects in terms of the purchase of the petrol,” he said.
He said when the protests ended, marketers rushed to load the product.
“Some of the trucks are already on the way, but we are having some challenges. The vessels that are supposed to bring the product to the tank farm were experiencing some delays in movement due to the rain, but that problem has been resolved.”
Meanwhile, Ogbugo Ukoha, executive director, distribution systems, storage, and retailing infrastructure of the Nigerian Midstream, Downstream Petroleum Regulatory Authority (NMDPRA), has warned marketers to desist from selling PMS to black marketers, stating that they are a source of security concerns to Nigerians.
Ukoha, who addressed a manager at one of the Total Retail Stations in Abuja, warned that petrol marketers risk losing their licenses if caught selling petrol to buyers in jerrycans or underselling the product to customers.
“Our understanding is that they buy this fuel from here and there is no other place they manufacture it from. If we see peddlers around, we will not ask any questions but withdraw your license,” Ukoha threatened.
“Please take it seriously; it is posing security concerns to Nigerians. No selling in jerry cans, no under-dispensing and ensure that peddlers are not within your vicinity. We will hold you responsible from today, if we see that going on.”
NNPC blames logistics
In response to the crisis, Olufemi Soneye, chief corporate communications Officer of NNPCL, has attributed the supply shortages in parts of Lagos and the Federal Capital Territory (FCT) to distribution challenges.
He also denied reports that the NNPC is indebted to international oil traders to the tune of $6.8 billion and that it has failed to remit revenues to the Federation Account since January.
