Fuel retailers have responded to the recent petrol shortage affecting the nation, attributing the issue to supply difficulties from the Nigerian National Petroleum Company Limited (NNPCL), the sole importer of the product. Marketers have been forced to rely on depot owners to secure fuel, leading to a slight increase in petrol prices across the country.
Billy Gillis-Harry, National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), discussed the situation on Channels Television’s The Morning Brief breakfast show on Tuesday. He noted that the petrol shortage has caused long queues at various stations, worsening traffic congestion and doubling transport costs for passengers.
The NNPC has cited “unfavourable weather” and “flooding” as the reasons for the shortage. In Lagos, NNPC stations are charging around ₦570, while independent retailers have increased their prices from ₦615 to over ₦650. Prices are even higher in Abuja and other regions.
Gillis-Harry confirmed that while the NNPC has not changed its price, the reliance on depots has affected fuel costs. “If we do not get the product directly from NNPC, we will get it from depots struggling to do everything to get products out in the market, so the prices will not be the same,” he explained.
He added that the NNPC is upgrading its platform, which has caused some supply challenges. “If there is anybody to be blamed, it should be blamed from the source of the products because retailers only sell what we are given; we do not import or refine,” he stated.
Gillis-Harry emphasized the rising logistics costs due to the scarcity and increasing prices of diesel used by trucks. He urged the government to consider subsidizing logistics prices for fuel distribution across Nigeria, refuting claims that petrol marketers are exploiting Nigerians by inflating prices. According to him, the highest cost of petrol should not exceed ₦680.
“I would expect that the highest price in petroleum where the depots operate – Lagos, Delta, Calabar, Rivers State – should be anything between ₦620 to ₦680 maximum. And when you add all the transportation issues that should take it from state to state, you can then look at the incremental additions that can come in, and make us not to be selling at ₦1,000,” he said.
Gillis-Harry also highlighted the impact of foreign exchange shortages on the country’s ability to import petroleum products, hindering the full implementation of deregulation in the sector. “Even though we don’t want Nigeria to be an import-centred place for PMS, we need PMS to be able to work until our refineries are producing,” he said, urging Nigerians to be patient and understanding as the current fuel shortages are being resolved.
