…petrol marketers shut station, marketers brace for ₦1,000/litre

…scarcity bites harder

Oredola Adeola

In an internal circular distributed on September 3, 2024, the Nigerian National Petroleum Company Limited (NNPCL) announced an upward review of its Premium Motor Spirit (petrol) pump price.

The new price, effective immediately, ranges from N855 to N897 per liter depending on the location, from Lagos to Abuja, marking a substantial increase from the previous rate of N617 per liter.

The adjustment has sparked widespread panic, leading to a surge in fuel queues and the closure of several petrol stations.

Independent marketers, anticipating further price hikes, are preparing for the possibility of PMS reaching an unprecedented ₦1,000 per litre.

As the scarcity deepens, Nigerians brace for the ripple effects on transportation, goods, and services, adding to the economic strain on households already grappling with the rising cost of living.

Advisors Reports correspondent who monitored the situation on Tuesday gathered that some marketers including Mobil , Total , NIPCO, Ardova. have adjusted their pump prices to over N900 per liter in major parts of Lagos State.

The circular, signed by NNPC Retail Management, and seen by Advisors Reports on Tuesday, directed all NNPC retail outlets to immediately update their pumps, totems (price boards), and MIDs to reflect the new PMS price.

The circular also emphasized the importance of adhering to the new pricing structure to maintain uniformity across all NNPC retail outlets.

In response to Advisors Reports’ queries regarding the price hike, Femi Soneye, General Manager of Corporate Communication at NNPCL, declined to provide any official comment.

When approached by Advisors Reports, Soneye simply stated, “No comment,” offering no further insights into the rationale behind the increase.

The price adjustment comes on the heels of NNPC Limited’s recent disclosure of its staggering $6 billion debt, which has placed significant financial strain on the state-owned oil corporation.

Soneye had in a statement issued earlier recently acknowledged recent reports in national newspapers regarding the company’s significant debt to petrol suppliers.

He said, “This financial strain has placed considerable pressure on the Company and poses a threat to the sustainability of fuel supply.

“In line with the Petroleum Industry Act (PIA), NNPC Ltd remains dedicated to its role as the supplier of last resort, ensuring national energy security.

“We are actively collaborating with relevant government agencies and other stakeholders to maintain a consistent supply of petroleum products nationwide,” Soneye said.

The debt burden, coupled with fluctuating global oil prices and Nigeria’s ongoing economic challenges, is believed to have contributed to the decision to revise the pump price.

The hike is expected to exacerbate the economic difficulties faced by Nigerians, who are already grappling with inflation and a rising cost of living.

The price increase could also fuel further unrest and dissatisfaction among the populace, as transportation costs and the prices of essential goods are likely to surge in response.

Industry experts suggest that this move by NNPC may be an attempt to stabilize its finances and meet its debt obligations.

However, the broader impact on Nigeria’s economy and the daily lives of its citizens remains to be seen.

As the situation develops, all eyes will be on the federal government and NNPC’s management to see how they navigate the public’s reaction and the potential fallout from this significant policy shift.