The price of Premium Motor Spirit (PMS), commonly known as petrol, has skyrocketed in Nigeria, with some independent filling stations selling it for as much as N1,000 per litre. This steep rise has prompted the Federal Government to take action, vowing to shut down any filling stations caught charging exorbitant prices.
Reports indicate that many independent oil marketers have fixed petrol prices between N900 and N1,000 per litre, far higher than the prices at Nigerian National Petroleum Company (NNPC) stations, where petrol sells for between N568 and N617 per litre. This disparity has led to long queues at NNPC stations as motorists seek more affordable fuel.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has expressed concern over the high prices set by independent marketers. The agency has warned that filling stations caught selling petrol at these inflated rates will be shut down. George Ene-Ita, the spokesperson for the NMDPRA, emphasized that the government will not tolerate profiteering at the expense of Nigerians.
“If we get these outlets, all we do is try and shut them down. NNPC is the company that brings in the product, and they tell us how much they sell as their ex-depot prices to off-takers. We sit down together and work out the margins, and there is no way it should be that high,” Ene-Ita stated.
Independent oil marketers have defended the high prices, claiming that they have been purchasing petrol from private depot owners at rates as high as N850 per litre. This, they argue, justifies the pump prices they set at their stations. However, Ene-Ita disputed this, saying that the regulator’s daily reports from depots show different prices.
“Our field agents at the depots give us a different figure,” he said.
The NMDPRA’s stance is clear: any filling station found selling petrol at rates above the acceptable margin will face immediate closure.
Ene-Ita further stated, “We don’t expect it to be higher than N650/litre.”
The ongoing fuel crisis in Nigeria has created an opportunity for independent marketers to increase their profit margins. With the NNPC’s supply of petrol reportedly low, private depot owners have taken advantage of the situation by hiking prices. As a result, independent marketers are selling petrol at inflated prices, especially in remote areas.
A source close to the situation explained, “The price is high because the supply is low. It is a matter of demand and supply. The price will continue to be up, at least for now. This is an abnormal situation.”
In various parts of the country, the impact of the high fuel prices is evident. In Osogbo, Osun State, independent marketers were selling petrol at prices ranging from N900 to N1,000 per litre, while major marketers sold it for N700 per litre. Many filling stations in the city remained closed, leading to a 50% increase in intra-city bus fares.
Similarly, in Damaturu, Yobe State, petrol prices at independent stations ranged from N980 to N1,000 per litre, while in Lagos and Ogun states, prices reached as high as N950 to N1,000 per litre. The situation in Kano State is particularly dire, with independent marketers reluctant to open their stations despite having fuel in stock. This has led to a resurgence of black market activities, where petrol is being sold for as much as N1,200 to N1,300 per litre.
The NMDPRA has urged all marketers to desist from exploiting the situation and warned that it would not stand by while Nigerians are cheated. The agency is also focusing on restoring normalcy to the fuel supply chain, but until then, the high prices are expected to persist, with the Federal Capital Territory, Abuja, receiving priority in fuel distribution to reduce long queues at filling stations.