By Adewale Sanyaolu
Relief from the protracted petrol scarcity horror, especially in the northen part of the country, is still elusive, as fuel marketers have expressed deep concerns over the drastic reduction in the volume petrol supplied by the Nigerian National Petroleum Company (NNPC) Limited at the weekend.
The situation, they noted, has led to a fragmented market, with various retailers adopting disparate pricing strategies, further complicating the landscape for consumers.
In a telephone interview with Daily Sun on Sunday, the National President of the Petroleum Retailers Owners Association of Nigeria (PETROAN), Mr. Billy Gilli-Harry, explained that NNPC has been rationing product supplies among its members.
While the company has provided products over the past two weeks, the volume has consistently fallen short of what is required to meet demand.
Gilli-Harry highlighted that this shortfall has contributed to the emergence of sporadic fuel queues across the country. The anticipated relief from the Dangote refinery, which was expected to bolster supplies, has not materialised, as the refinery has struggled to operate at full capacity.
“For now, what we are getting from NNPC Ltd is not from the Dangote refinery but the ones imported. From information available to me, what NNPC has been able to get from the Dangote refinery is just 300 trucks”, he said.
Recent reports reveal that the Dangote refinery has released merely 16.3 million liters of petrol, which falls short by 8.7 million liters against the initial daily agreement of 25 million liters with NNPC Ltd. Specifically, the refinery has managed to dispatch 12,200 metric tons of fuel (16.3 million liters) from Tank No. 3201D, highlighting the ongoing supply constraints.
Regarding PETROAN’s ongoing negotiations with the Dangote refinery, Gilli-Harry mentioned that they are still awaiting a response to their request to become an off-taker.
‘‘We have since submitted our letter to be an off taker but they are yet to get back to us. We are waiting for the outcome of that letter to see what decision they will arrive at,’’.
He further pointed out that the existing framework for the agreement and payment structure with NNPC Ltd, acting as the bulk off-taker selling to other marketers, has not been properly articulated. PETROAN continues to seek further clarification on this matter to ensure a smoother operational process.
Amid these supply challenges, various fuel marketers have begun adjusting their prices, leading to a confusing array of costs for consumers. For instance, 11 Plc, formerly known as Mobil Oil Plc, has raised its petrol price from N868 to N910 per liter. Meanwhile, NNPC retail outlets maintain their price at N855 per liter, contrasting sharply with independent Petroleum Marketers Association of Nigeria (IPMAN) members, who have increased their prices significantly, ranging from N1,050 to N1,150 per liter.
According to stakeholders, the fragmented pricing structure exposes the wider challenges facing the Nigerian fuel market, as both consumers and marketers navigate a turbulent landscape dogged by epileptic supplies, with no end in sight.