Fuel Shortages in Abuja and Neighboring States as Independent Marketers Close Stations
Fresh queues for Premium Motor Spirit (PMS), commonly known as petrol, surfaced in Abuja, parts of Niger, and Nasarawa States on Friday following the closure of numerous filling stations operated by independent marketers.
Dealers shut down their retail outlets due to their inability to access petrol, attributed to the hike in the ex-depot price of the commodity to N710 per litre by private depot owners.
Motorists flocked to the few stations that dispensed petrol on Friday, particularly those operated by the Nigerian National Petroleum Company Limited (NNPC) and major oil marketers in Abuja and surrounding states. This resulted in massive queues at outlets such as the NNPC mega station on the Gwarimpa axis of the Zuba-Kubwa Expressway, Conoil and Total filling stations opposite the NNPC headquarters in Abuja city centre, and Salbas filling station at the Dei-Dei end of the Zuba-Kubwa expressway.
Independent oil marketers, who own over 70 per cent of filling stations across the country, blamed the situation on the hike in the ex-depot price of petrol by private depot owners. Abubakar Maigandi, the National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), stated that private depot owners had raised the ex-depot price of PMS to N710 per litre, whereas the pump price at NNPC retail stations remained N617 per litre.
“The current situation is due to the pricing by private depot owners. It has become very difficult for independent petroleum marketers to get the product and sell it in Abuja and neighboring states, as well as in other northern states,” Maigandi explained.
He highlighted the disparity in pricing: “The private depots are selling at N710 per litre, but NNPC retail outlets are selling at N617 per litre. When independent marketers purchase at N710 per litre and factor in transportation costs, the pump price exceeds N710 per litre, while NNPC stations sell for significantly less.”
Maigandi noted that the extensive network of stations operated by IPMAN means any disruption in supply to their members leads to fuel queues, as major marketers and NNPC stations are fewer. Regarding direct PMS supply from NNPC, Maigandi said, “We have been negotiating with them, and they promised to start giving us our allocation. However, the quantity is insufficient for our members nationwide.”
He added that the queues were less pronounced in remote villages but more visible in city centres where NNPC stations sold at lower prices.
Despite the market challenges, Maigandi assured that petrol was not scarce in the country. “There is no scarcity. The product is available. The queues are due to market challenges, but once we receive products from NNPC or at reasonable prices, the queues will disappear.”
Officials at the Federal Ministry of Petroleum Resources confirmed there was enough product in-country and reiterated that the market was deregulated. An NNPC official assured motorists that the queues would clear quickly as the company had sufficient product in supply.
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