Fear Of Price Hike Forces NNPC To Increase Supply To Oil Marketers

In order to avert a hike in the price of Premium Motor Spirit (PMS), known as fuel, Nigerian National Petroleum Company (NNPC) Limited has increased the supply level to oil marketers.

This was revealed by the National Public Relations Officer, the Independent Petroleum Marketers Association of Nigeria (IPMAN), Ukadike Chinedu, who said the NNPC supplied 13 million litres. 

“The NNPCL supplied 13 million litres and informed us about it. This is to cushion the effect of the poor supply in the affected areas. They also promised that they will ensure that marketers are given products back-to-back,” Chinedu said.

This led to a surplus of the product across retail stations, Chinedu confirmed in a report by Punch on Sunday, stating it will prevent unnecessary price disparities. 

He further stated: “That is the situation of things now. The recent supply of PMS has really helped in making the product available in many retail outlets across the country. So, with enough supply, the issue of unnecessary price disparities would be addressed,” Ukadike stated. 

Prior to the supply, he complained that members of IPMAN have been unable to access petrol from depots to sell at their filling stations, and lack of fuel could force oil marketers to increase the pump price. 

Chinedu explained that: “in Port Harcourt, for instance, we have Oando and NNPC Retail, and they have products in some private depots. Master Energy and Liquid Bulk also have products, but there is no volume for independent marketers.”

“Independent marketers have no volume in all these depots and we have over 3,400 tickets lying and waiting at the NNPC Retail account. 

“This new system is now making independent marketers beg for petroleum products from NNPC Retail. The lopsided distribution pattern will continue to cause scarcity and price disparity in retail outlets,” He added.

Meanwhile, Nigerians spend an estimated N484 billion monthly, as they consume about 80 million litres of fuel daily.