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Independent Marketers Hike Petrol Prices, Give Reasons as Supply Improves

Independent petroleum product marketers have given reasons why petrol sells for higher at filling stations The marketers say that due to the system failure at NNPC, members now resort to buying the product in the open market The independent marketers reportedly sell petrol at an average of N750 per litre as against the N605 major marketers sell the product.
Following the lingering fuel scarcity at petrol stations, marketers are now setting pump prices at higher rates nationwide. Findings in Lagos and Abuja indicate that the margin between petrol station prices owned by major marketers and independent marketers is widening. Major marketers maintain relatively stable prices, while independent operators have adjusted their prices upwards by 20 to 30%.

Independent marketers have blamed the situation on a system breakdown in the Nigerian National Petroleum Company Limited (NNPCL), hinting at robust Business-to-Business transactions among the marketers favouring the major marketers. They stated that independent marketers no longer have direct access to imported petroleum products at the depots at the stipulated price.

This medium report that the Independent Petroleum Marketers Association of Nigeria (IPMAN) explained that petrol prices are higher at their stations because members purchase their products from the open market.

The report quoted IPMAN’s Public Relations Officer, Chinedu Ukadike, as saying that due to the breakdown of NNPC’s retail portal, members have been unable to secure products from the company.

He pointed out that independent marketers cannot sell below ex-depot price without adding logistics and wage costs. Ukadike said: “We source our product from the open market. We buy from tank farm owners, major marketers, and depot owners. We have been unable to get products from the NNPC for some time now because the portal is down. It is undergoing an upgrade, and we have not had access to it. Without access, you cannot get a product.

A market survey by THIRDEYE shows that supply has improved as most filling stations report receiving the product.
Further findings indicate that petrol stations across Osun now have the product but are yet to reduce the prices. A visit to most filling stations shows fewer lines at most petrol stations. A motorist who identified himself as Olatunde told THIRDEYE that the product is available but that the stations still sell at higher costs.

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