Fuel Shortages: IPMAN Explains High Pump Prices At Our Station

In the midst of persistent petrol shortages and lengthy queues at filling stations, the pricing landscape is undergoing notable shifts, particularly between independent marketers and major players in the industry.

Recent investigations conducted by Vanguard in Lagos and Abuja reveal a growing disparity in pump prices between major marketers and independent operators. While major marketers have managed to maintain relatively stable pricing, independent marketers have raised their prices by as much as 20 to 30 percent.

The average selling price per litre stands at approximately N605 for major marketers, contrasting with an average of N730 per litre for independent marketers. However, there are outliers in both categories, with some major marketers selling below N600 per litre and others reaching as high as N900 per litre, particularly in the outskirts of urban centers.

Despite the soaring black market prices, which have reached as high as N1500 per litre, petrol stations continue to witness significant foot traffic and lengthy queues.

Amidst this scenario, independent marketers point to systemic breakdowns within the Nigeria National Petroleum Company Limited (NNPCL) and a thriving trend of Business-to-Business (B2B) transactions among petroleum marketers, which seem to favor major marketers. This breakdown has disadvantaged independent marketers, as they no longer have direct access to imported product consignments at depot prices.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has shed light on the reasons behind the higher pump prices at its stations. According to Chief Chinedu Ukadike, the Public Relations Officer of IPMAN, the organization’s members source their products from the open market due to the NNPC Retail portal being offline. This situation has hindered members’ ability to access petrol at regulated depot prices.

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