By Milcah Tanimu
Numerous petrol stations nationwide are presently enforcing rationing measures forc, commonly known as petrol, as fuel marketers opt out of importation
Despite a significant decline in fuel consumption over the past months following the surge in fuel pump prices, which explains the absence of extensive queues at fuel stations, there have been reported mild queues at petrol stations in several major cities, particularly in Lagos.
These modest queues in major cities, including Lagos, are projected to intensify in the upcoming days due to the ongoing rationing strategy.
For more than a week now, a large portion of fuel dispensing outlets in Lagos has been operating at reduced capacity, only selling for a limited number of hours each day.
Initially, marketers cited expectations of an impending upward price adjustment, which the Nigerian National Petroleum Corporation Limited (NNPCL) promptly denied.
Another speculation suggested that the federal government was considering reintroducing partial subsidies to mitigate the impact of the rising petrol prices.
While there has been no official confirmation of this claim, a highly credible source informed our correspondent that such rumors are circulating and the government is reportedly contemplating such a move.
This purported decision aims to counter the escalating petrol pump prices, which have been taking a toll on the general cost of living for the masses.
The source disclosed that this measure appears to be the only viable option for the government at the moment, as it lacks control over international crude oil prices, which significantly influence the cost of refined products imported into the country.
However, a reliable industry insider, contacted by our correspondent, confirmed that fuel depots are seemingly experiencing shortages.
Our source reiterated that the experiences of motorists at filling stations indeed validate the current situation.
“The truth is that marketers are not importing. The landing cost is above the ex-depot price currently, and accessing foreign exchange is proving to be challenging,” she explained.
She further stated that the issue of pricing with the NNPCL remains unresolved, and the company’s decision to stipulate the selling price for marketers contradicts the principles of deregulation and competition.
According to the source, despite the concept of deregulation, if the exchange rate and forex scarcity remain unresolved, petrol prices will continue to rise.
major petroleum product marketers and other independent traders, who had resumed PMS importation following the removal of petrol subsidies by the federal government, were contemplating reducing further import activities.
Industry sources informed us that an increase in the exchange rate had rendered the business unprofitable.
Just last month, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) announced that oil marketers had commenced petrol importation into the nation.
Previously, product importation had been exclusively managed by the Nigerian National Petroleum Corporation Limited (NNPCL).
At a stakeholders’ engagement event in Lagos, Farouk Ahmed, the CEO of NMDPRA, revealed that out of 56 oil marketing companies that applied for licenses, 10 demonstrated commitment, and three had already imported fuel into the country.
Ahmed listed the three importing companies as A.Y. Ashafa, Prudent, and Emadeb, while mentioning that others were expected to commence imports in the subsequent weeks.
He also reiterated the federal government’s dedication to deregulating the sector in line with the Petroleum Industry Act (PIA) and noted that challenges affecting seamless product importation were being addressed.
In recent times, oil marketers have urged the government to address security concerns and temporarily suspend the 7.5% Value Added Tax (VAT) on diesel, as part of the measures required to positively impact operations in the downstream sector.
