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Fuel scarcity: Marketers blame forex, low NNPC supply

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has blamed the scarcity of petrol in Lagos, Abuja and across states on the unstable value of…

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has blamed the scarcity of petrol in Lagos, Abuja and across states on the unstable value of the foreign exchange (forex) and a low supply of bulk import to depots from the Nigerian National Petroleum Company Ltd.

There are queues across stations in Lagos and Abuja despite the product selling for N180 per litre across major outlets in the capital city.

That has also led commercial drivers into increasing transport fares.

Chief Ukadike Chinedu, the IPMAN National public relations officer, during a press briefing in Lagos, said bigger vessels bring petrol to Nigeria through Lagos while smaller ones convey products to ports in Lagos, Warri, Port Harcourt, etc. these smaller vessels are also paid in dollars.

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“Now, you cannot expect them to sell PMS at N145/litre when the price of hiring a vessel has risen from $38,000 to around $108,000 to $111,000, depending on the level of the vessel. These charges are paid in dollars.”

He also explained that the absence of vessels to move products due to the hike in hiring cost was also contributing to the ghost scarcity of PMS across states.

The IPMAN official said the NNPC was currently finding it tough to continue subsidising PMS.

“The least that NNPC can sell petrol is over N400/litre to depots and not at N145/litre, but because of subsidy, which is becoming over-bearing on them, the oil firm has been struggling to subsidise,” he stated.