On Friday, long queues for Premium Motor Spirit (PMS), commonly known as petrol, re-emerged in Abuja and parts of Niger and Nasarawa States. This development followed the closure of numerous filling stations operated by independent marketers, who cited difficulties in accessing petrol due to a significant hike in the ex-depot price to N710 per litre by private depot owners.
Motorists flocked to the few stations dispensing petrol, primarily those operated by the Nigerian National Petroleum Company Limited (NNPC) and major oil marketers in Abuja and surrounding areas. This led to extensive queues at outlets such as the NNPC mega station on the Gwarimpa axis of the Zuba-Kubwa Expressway, Conoil and Total filling stations opposite the NNPC headquarters in Abuja city centre, and Salbas filling station at the Dei-Dei end of the Zuba-Kubwa expressway.
The Independent Petroleum Marketers Association of Nigeria (IPMAN), which controls over 70% of the filling stations nationwide, attributed the fuel scarcity to the ex-depot price increase by private depot owners. According to IPMAN National President, Abubakar Maigandi, the price disparity between private depots and NNPC retail outlets has created significant challenges for independent marketers.
“The current situation is a result of how the private depot owners have been selling their products. It has been very difficult for independent petroleum marketers to get the product and sell it in Abuja and neighbouring states, as well as in other states in the North,” Maigandi explained. He noted that private depots were selling PMS at N710 per litre, while NNPC retail outlets sold it at N617 per litre.
Maigandi further highlighted the cost implications for independent marketers. “By the time the independent marketers buy from private depots and bring it to our filling stations, we will not be able to sell our product because our cost price is already so high, while the cost at NNPC retail outlets is far lower. When we buy it at the rate of N710/litre, we have to add transportation cost again because there is no equalisation. And when we add the cost of transportation, the pump price is going to be higher than the N710/litre ex-depot price, whereas NNPC stations sell at N617/litre.”
Due to the extensive network of stations operated by IPMAN, any disruption in their supply significantly impacts fuel availability, leading to queues. Maigandi mentioned ongoing negotiations with NNPC to secure direct PMS supplies. “We are getting products from NNPC, but the volume is too small for our members. We are requesting additional volumes because, in Abuja alone, we have over 250 retail outlets belonging to IPMAN members,” he said.
He also clarified that the queues were less pronounced in remote areas but prevalent in city centres where NNPC stations offered lower prices. Despite the challenges, Maigandi assured that there was no actual scarcity of petrol in the country, attributing the queues to market dynamics.
Officials from the Federal Ministry of Petroleum Resources and NNPC echoed Maigandi’s assurances, stating that there was sufficient petrol in the country and that the downstream oil sector was deregulated. They emphasized that the current queues were a result of market challenges and expressed confidence that the situation would stabilize soon.
“There is no scarcity. There is the product. The queues are caused basically by the market challenge, as I have explained to you. But as soon as we get products from NNPC or at fairly good prices, we will dispense and the queues will vanish,” Maigandi reiterated.
Officials at NNPC also reassured motorists that the company had adequate petrol supplies to address the demand, predicting a quick resolution to the fuel queues.
