Marketers Explain Reason For Recent Petrol Price Hike

Marketers Explain Reason For Recent Petrol Price Hike

Fuel retailers have reacted to the recent petrol shortage in the nation, attributing it to difficulties in supply from the only importer of the product, the Nigerian National Petroleum Company Limited (NNPCL).

According to the marketers, they have had to turn to depot owners to secure fuel for their stores, leading to a “minor” increase in the cost of this essential item nationwide.

Naija News reports that the National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, disclosed this during a segment on Channels Television’s The Morning Brief breakfast show on Tuesday.

It is worth noting that the petrol shortage has affected the nation recently, with the state-run NNPC citing “unfavourable weather” and “flooding” as the reasons for the shortage.

Long queues have been observed at various petrol stations across the country.

This has exacerbated the traffic situation in various states, as the extended queues have blocked major roads, making it difficult for vehicles to move and leaving thousands of passengers stranded at bus stops, where transport costs have more than doubled.

In addition to NNPC stations in Lagos charging around ₦570, independent retailers have increased their prices from ₦615 to over ₦650. The cost is even higher in Abuja and other regions.

Speaking, however, on the situation, Gillis-Harry confirmed that the NNPC, which imports petrol into the country and supplies marketers, has not changed its price, but “if we do not get the product directly from NNPC, we will get it from depots struggling to do everything to get products out in the market, so the prices will not be the same”.

According to him, the NNPC was carrying out an upgrade on its platform, and that should be concluded as soon as possible, “but that did not stop NNPC from making alternative arrangements to make sure we have petroleum products. As far as we know, the challenges are all supply-based”.

“If there is anybody to be blamed, it should be a blamed from the source of the products because retailers only sell what we are given, we do not import or refine,” he added.

Gillis-Harry emphasized that the increasing complexity of logistics costs is due to the scarcity and rising prices of diesel used by trucks.

He urged the government to consider subsidizing the prices of logistics for fuel distribution across Nigeria.

He refuted claims that petrol marketers are exploiting Nigerians by inflating the prices of the commodity.

He stated that the highest cost of petrol should not exceed ₦680.

“I would expect that the highest price in petroleum where the depots operate – Lagos, Delta, Calabar, Rivers State – should be anything between ₦620 to ₦680 maximum. And when you add all the transportation issues that should take it from state to state, you can then look at the incremental additions that can come in, and make us not to be selling at ₦1,000,” Gillis-Harry said.

The PETROAN boss mentioned that the lack of foreign exchange has hindered the country’s ability to import petroleum products, thereby restricting the complete implementation of deregulation in the sector.

“If we are importing products in a way that the deregulation is set for us to be able to import, which we desire to do, but we are hamstrung by the unavailability of foreign exchange to make that endeavour work. Even though we don’t want Nigeria to be an import-centred place for PMS, we need PMS to be able to work until our refineries are producing,” Gillis-Harry said, urging Nigerians to be patient and understanding as the current fuel shortages would be resolved.

The post Marketers Explain Reason For Recent Petrol Price Hike appeared first on Naija News.


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