HomeEconomyMarketers Attribute Fuel Scarcity To Supply Challenges

Marketers Attribute Fuel Scarcity To Supply Challenges

The recent petrol scarcity in Nigeria has been attributed to supply challenges faced by the sole importer of the commodity, Nigerian National Petroleum Company Limited, petrol marketers confirmed.

This development has resulted in a slight increase in prices across the country as marketers approach depot owners to obtain petrol for their retail outlets.

While the scarcity persists, the National President of the Petroleum Products Retail Outlets Owners Association of Nigeria, Billy Gillis-Harry, made comments on behalf of the marketers during Channels Television’s The Morning Brief breakfast program on Tuesday.

With the state-managed NNPC blaming the shortage on “adverse weather conditions” and “flooding” petrol scarcity has recently affected the conventional daily activities in the country.

Currently, there are commuters at bus stops waiting, due to hike in transport fares, while long queues at filling stations have made traffic conditions worse.

On the cost of fuel, retail outlets owned by independent marketers have raised their prices from about N615 to over N650, except NNPC filling stations selling at about N570 in Lagos.

Meanwhile, it is a different situation in other parts of the country as prices are even higher in Abuja and other states.

Speaking further on the situation, Gillis-Harry revealed that the NNPC, which imports petrol and supplies marketers, has not changed its price, adding that the company was upgrading its platform, which should be concluded soon.

“But that did not stop NNPC from making alternative arrangements to ensure we have petroleum products. As far as we know, the challenges are all supply-based.

“If we do not get the product directly from NNPC, we will get it from depots struggling to do everything to get products out in the market, so the prices will not be the same.

“If there is anybody to be blamed; it should be blamed on the source of the products because retailers only sell what we are given, we do not import or refine,” he added.

Gillis-Harry also noted that the cost of logistics is becoming more complex due to the scarcity and expense of diesel used by trucks.

While denying allegations that petrol marketers are taking advantage of Nigerians by hiking prices, his suggestion was that the government should subsidize the logistics costs for fuel distribution across Nigeria.

He said the highest cost of petrol should not exceed N680.


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