As oil marketers have ceased importing Premium Motor Spirit, more commonly known as gasoline due to high landing fee, reports have surfaced that fuel lines have returned to several areas of Lagos State.
According to Gistlover seven oil marketers reportedly started importing gasoline approximately a month ago but have since halted due to the currency issue.
As a result of the absence of gasoline in numerous depots and filling stations, which has caused long lines at fueling stations, it was learned on Friday that the Nigerian National Petroleum Company Limited (NNPCL) was the sole importer of PMS.
This website stated on Friday that Patrick Ilo, the chief executive officer of PETROCAM Trading (Nig) Ltd., told The Punch that as of Tuesday, the business had landed 52,000 metric tonnes of gasoline imported at a price of N720 per liter.
Ilo clarified that his company is unable to sell at this price due to the expense of the Nigerian National Petroleum Company Limited (NNPCL).
Given the landing cost, the CEO of PETROCAM claimed that this is proof that the NNPCL is still providing subsidies for the product, while he added that he doesn’t blame the government.
According to him, if the Federal Government had actually stopped subsidizing the fuel, the pump price in Lagos State should be approximately N729 per litre if the landing cost was already N720.
Speaking on the platform, oil marketers said that up until last month, when they brought in products, they would get the NNPCL to raise the price to match the actual pump price; but, as of late, the NNPPCL has refused to do so.
Due to the new landing fee, marketers are no longer able to import the goods and those who do can no longer sell it. This is due to the fact that the government, through NNPCL, halted raising the price of gasoline because to the difficult economic conditions that exist right now.
Following these, the majority of merchants assumed that the government had covertly reverted to the subsidy system; nevertheless, the government has kept silent about the rumors.
The marketer said that the government was providing subsidies for the good, which kept the price of gasoline where it was.
The NNPCL was currently straining to sell to third parties as well as meet the demands of its various retail stores, according to marketers.
A marketer who spoke to The Punch on condition of anonymity said, “The depots are dried up. That’s a statement of fact. For more than a month now, no other importer has brought in the product except the NNPC.”
On whether marketers were breaking even because subsidy had been reintroduced on petrol, the dealer said, “We were not breaking even. Rather, what the NNPC was doing was that they were able to help with price adjustments. First of all, when the situation started, each time marketers brought in products, they influenced the NNPC to change its price, and the moment the NNPC changed its price, other marketers would follow.
“But for over a month now, I don’t think marketers have been able to influence the NNPC to change its price. So, that is why you hear that the landing cost currently is about N720/litre, but the NNPC is still selling at between N580 and N617, depending on your location.
“It (the government) has said the price should not be more than that amount. So, for over a month now, no marketer has brought in the product due to the reintroduction of subsidy.”
Speaking further, the marketer said, “The NNPC also has its challenges. The NNPC you have now is different from the one before. If it was before, even if they bring in 10 million litres, they can give close to seven million litres to other marketers and utilise the rest.
“But now, even some of their retail outlets don’t have products because there are so many now. So, you cannot bring in products, you can’t be supplying third parties.”
The marketer said the situation has caused fuel queues to return in some parts of Lagos State.
The source said, “In Lagos, we already have queues. I was driving home (Friday evening) in Okota, and the queues at the NNPC station were as long as you can imagine.
“The issue is that the President did not understand the situation before he said the subsidy was gone. If he understood the sector, he wouldn’t have made that announcement.
“He should have sat down with stakeholders, and he would have understood the intricacies of the sector. However, all of us are in it now.”
Proffering a solution, the marketer said, “The government cannot announce that subsidy is back, but it has to plan right now.
