By Yemi Olakitan
Following the significant imports of PMS by the Nigerian National Petroleum Company Limited, oil dealers announced on Saturday that the pump price of Premium Motor Spirit, which is more often referred to as fuel, may be decreased this week in filling stations controlled by independent marketers. This comes as a direct result of the imports.
According to the information that was received, the recent increase in the price of gasoline at retail outlets that were operated by independent marketers was due to the shortage of the commodity, which led to actions of profiteering on the part of both the owners of depots and filling stations.
However, operators in the downstream oil industry verified on Saturday night that a number of NNPCL’s imported cargoes had arrived in Nigeria, as some of them were now being discharged at the ports.
“Once the products start hitting filling stations, fuel price will reduce, because the recent high cost was due to supply drop,” the National Public Relations Officer for the Independent Petroleum Marketers Association of Nigeria, Chief Ukadike Chinedu, noted, “Once the products start hitting filling stations,” he said, “the recent high cost was due to drop.”
On Thursday, oil marketers blamed the appearance of queues for fuels at filling stations in Abuja and the neighboring states of Nasarawa and Niger on the low supply of PMS by its single importer, NNPCL. NNPCL is the only company that imports PMS into Nigeria.
The national oil corporation, on the other hand, contested the argument of the marketers by arguing that the queues in the affected areas were the result of a “price war.”
But according to the most recent information regarding the imports by NNPCL, operators in the sector have claimed that not only will the lines disappear, but there will also be a decrease in price at independent filling stations.
At the moment, the price of gasoline at filling stations that are controlled by NNPCL ranges mostly between N580 and N613 per liter. The vast majority of additional retailers provide the product at markedly increased prices; in fact, some vendors charge as much as N670 a liter for PMS.
“The most important thing that has occurred at this time is that the cargoes carrying PMS that were requested by NNPCL have arrived, and some of them have already berthed and are discharging. Therefore, the limited availability that we are currently facing will no longer be an issue,” Ukadike stated.
He pointed out that the influx of foreign cash over the holiday season would not necessarily have an effect on the price of gasoline; rather, the increased imports by NNPCL ought to deserve a reduction in price.
He stated that NNPCL had certified the significant PMS imports to the respective marketers.
When asked if the retailers had begun getting the products, Ukadike provided the following response: “Based on my most recent discussion with the NNPC management, by Monday we will begin receiving from Port Harcourt and Warri.”
IPMAN’s position was corroborated by a big marketer who remarked that “when you wet the market with products, there’ll be no room for profiteering.” This marketer’s statement supports IPMAN’s argument.
Earlier, Olufemi Soneye, the Chief Corporate Communications Officer of NNPCL, indicated that the position of oil marketers in reference to the re-emergence of gasoline queues was not genuine, as he argued that the oil business had enough products to meet demand. He said this while stating that the NNPCL had enough products.
“That is not accurate at all. The recent shortage in Abuja is largely the result of a price war, which is characteristic of markets that are very competitive. Waiting in line at a gas station that offers lower prices than others is where motorists would want to do so.
“While NNPC retail is selling at N613/litre in Abuja, other marketers’ pricing range between N625-N650/litre,” added Soneye.
