Independent Marketers Raise Alarm As Fuel Price Hits ₦762 Per Litre At Filling Stations

Independent petroleum marketers in Lagos have voiced concerns over the surging prices of Premium Motor Spirit (PMS), commonly known as petrol, in private depots.

Reports gathered reveal that the price has escalated to as high as ₦762 per litre.

Naija News reports that this increase has pushed the pump prices at outlets managed by independent marketers to range between ₦730 and ₦750 per litre.

Consequently, queues have emerged at some stations run by major marketers and the Nigerian National Petroleum Company Limited (NNPCL), where the prices are relatively lower at ₦610 and ₦568 per litre, respectively.

Vanguard Newspaper reports that Petrol was sold at prices ranging from ₦701 to ₦735 per litre.

The highest reported prices were at the Bovas depot, where petrol was sold to independent marketers at ₦762 per litre, and the MRS depot, which had a rate of ₦735 per litre.

Conversely, the lowest prices were observed at the Rainoil and Emadeb depots, each selling at ₦705 per litre, while the depots owned by Eterna Oil and Sahara, also known as Asharami depot, offered petrol at ₦701 per litre.

An independent marketer, speaking under the condition of anonymity, shared insights into the challenges faced by small-scale operators.

“Most major marketers own tank farms in Lagos and buy directly from NNPCL. While scarcity has slightly eased due to NNPCL supplying mainly to major marketers, we, the independent marketers, depend on these major outlets for products,” he stated.

He further explained the financial implications of purchasing from major marketers, “When we buy petrol at ₦705 per litre and add transportation costs, the price at the pump could escalate to ₦740 to ₦750 per litre.

“This pricing disparity makes the market highly competitive, especially in Lagos where major marketers sell at lower rates.”

In a telephone interview, the National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Alhaji Abubakar Migandi Garima, told Vanguard newspaper that although supply issues have eased recently, the allocation from NNPCL is insufficient to meet the demands of all members, forcing many to turn to private depots.

“Some of our members have secured direct purchases through NNPCL, but the allocations are minimal. To sustain operations, they have to supplement with purchases from private depots, inevitably leading to higher retail prices compared to those of major marketers,” Garima explained.

Checks indicate that some independent marketers have formed partnerships with major marketers to procure petroleum products at NNPCL prices, a strategy aimed at staying afloat in the competitive market.