x

Deserted Depots as Petrol Landing Cost Hits N720/litre: Looming Fuel Scarcity

By Daniel Edu

Petroleum product depots across Nigeria are seeing a decline in activity due to a shortage of products caused by foreign exchange rate fluctuations. The landing cost of Premium Motor Spirit (PMS), commonly known as petrol, has surged to N720 per litre, up from N651 per litre in August, according to oil marketers.

Oil dealers warn that filling stations are increasingly closing down, making it difficult to sustain the business. This situation could potentially lead to widespread fuel scarcity in the coming months.

The National President of the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA), Benneth Korie, revealed that many depots are facing shortages, and their owners are struggling to secure bank loans due to high-interest rates caused by currency instability and the rising cost of the dollar. Both independent and major marketers are being severely impacted.

Korie emphasized the need for urgent government intervention to prevent the industry from collapsing, as its failure would have devastating consequences for the overall economy.

In addition, Patrick Ilo, CEO of PETROCAM Trading (Nig) Ltd., reported that the company imported 52,000 metric tonnes of petrol at a cost of N720 per litre without subsidies. He suggested that the pump price in Lagos should be around N729 per litre if the Federal Government had truly stopped subsidizing the product.

Ilo attributed the price increase to the high foreign exchange rate and stated that the Nigerian National Petroleum Company Limited (NNPC) was still subsidizing petrol. He noted that NNPC’s quiet subsidy was over N100 per litre, making the situation complex.

The current foreign exchange rate of the Central Bank of Nigeria stands at around N766/$1, while the parallel market rate is approximately N990/$1.

Hot this week

Editors Urge Government To Create Safe, Enabling Environment For Journalists

· Ask security agents to find missing Vanguard journalistAs...

EXCLUSIVE: Buhari orders probe of Isa Funtua, AMCON over keystone and Etisalat

Following the controversy generated by the leading opposition party,...

6 Signs your boyfriend thinks you are ugly -Take note of No. 2

They say there are three kinds of people; the...

2023: South-East, Middle Belt Forum Endorses Peter Obi

The South-East and Middle Belt Forum has endorsed the...

ACF decries worsening, detoriating insecurity in northern Nigeria

By Achadu Gabriel, KadunaArewa Consultative Forum (ACF), on Wednesday...

Nigeria Risks Disintegration Without Federal Reform – Anyaoku Warns

Elder statesman and former Commonwealth Secretary-General, Chief Emeka Anyaoku,...

BREAKING: Court Reinstates Suspended Edo LG Chairman

An Edo State High Court sitting in Igarra, Akoko-Edo...

FCTA Crushes 601 Impounded Motorcycles in Abuja

By Joyce Remi-BabayejuThe Federal Capital Territory Administration, FCTA, on...

FIRS Launches E-Invoicing Committee to Enhance Tax Compliance

The Federal Inland Revenue Service (FIRS) has inaugurated the...

FG Sponsors 37 Visually-Impaired Candidates for UTME in Bauchi

The Federal Government, through the Joint Admissions and Matriculation...

BREAKING: EFCC Arrests Socialite E-Money Over Naira Abuse, Dollar Spraying

The Economic and Financial Crimes Commission (EFCC) has arrested...

CROSSJOF Congratulates Mrs.Otu, CRS First Lady on 61st Birthday

By Joyce Remi-BabayejuCross River State Journalists Forum (CROSSJOF) FCT...
spot_img

Related Articles

Popular Categories

spot_imgspot_img