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Business News of Saturday, 18 November 2023


'N640/litre is cheap': Oil marketers explain why fuel could sell for N800/litre as Christmas knocks

Fuel Pump Fuel Pump

Oil marketers in Nigeria have explained why queues resurfaced in some parts of the country.

They also stated why fuel is now selling more than the usual price in some regions.

Ukadike Chinedu, the National Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria, said an insufficient supply of products caused queues.

According to him, profiteering among marketers would be curtailed if there were enough products.

He cited an instance in Port Harcourt where marketers' tickets have been tied down.

He also noted that some marketers have been unable to load products for the past three weeks.

Chinedu also added that the few available stations that have petrol have been experiencing queues.

He said that since the NNPC has yet to fulfil its promise of delivering, private depot owners have raised the cost of their products, leading to the hike in petrol pump prices at retail outlets.

Chinedu noted that the cost of petrol in most states outside Lagos and the South-West was about N650/litre, but it is starting to rise in the north.

The N640/litre price in Abuja is cheap when compared to the N660/litre average price in the South-East.

In fact, in Owerri, Imo State, it is N670 and in Anambra, it is N700/litre. So, those of you in Abuja are lucky.

Do you know that it is getting close to N800/litre in remote areas in the far North? This is based on reports we receive from our members.

That is the situation. There is insufficient supply of products and this often leads to profiteering.

Mohammed Shuaibu, the Secretary of IPMAN, Abuja-Suleja, noted that the queue experienced in some states is due to low supply volumes from NNPCL and the forthcoming festive season.

Meanwhile, Olufemi Soneye, the Chief Corporate Communications Officer of NNPCL, countered the position of oil marketers on the emerging queues in fuel stations.

He said that the recent tightness in Abuja resulted from a price war.

According to him, this is typical of any competitive market, as motorists would instead queue at filling stations that offer lower prices than others.

"While NNPC retail is selling at N613/litre in Abuja, other marketers’ prices range from N625-N650/litre."

Earlier, reported that marketers raised concern over NNPC's monopoly as Forex scarcity bites.

The US Grains Council and the Nigerian National Petroleum Company Limited (NNPCL) will collaborate on ethanol production, reported.

NNPC announced the development on its X page on Wednesday, November 15, 2023, when the US Grains Council visited the national oil firm.

NNPCL Chief Executive Officer Mele Kyari met with the members of the Grains Council from the US, led by Ryan LeGrand, the Council's CEO.