Depots, marketers subtly push for fuel price increment as scarcity bites harder
… Queues resurface in Lagos
APPARENTLY preparing Nigerians for a full deregulation regime, depot owners and some petrol marketers have again put the nation in another panic mode by hoarding available products in a push to ensure prices are adjusted to meet their operating expenses.
With products hoarded, fuel queues have emerged, forcing many motorists to engage in panic- buying, just as many retail outlets, especially those owned by independent marketers selling above the regulated price.
Long queues were witnessed in many parts of Lagos, yesterday, with the situation apparently worse on Ikorodu road, Maryland, Ikeja, Anthony, Bariga, Ilupeju and Gbagada areas as motorists become agitated after spending hours on queues.
The development left commuters stranded with traffic jams in major areas in Lagos as motorists struggled to get the product.
Indeed, only retail stations owned by Major Oil Marketers Association of Nigeria ( MOMAN) are dispensing products and selling at regulated price of N170 per litre, while some stations owned by rumour of stock out, saying, “There is no truth to that at all. Independent Petroleum Although there may be some Marketers Association of issues, unavailability of PMS is Nigeria ( IPMAN) sell between certainly not one of them. N200 and N210 respectively. There is enough that can last
The Guardian had reported more than 20 days. W e have marketers’ concerns about the agreed that loading of PMS sustainability of the present should start immediately and I regulated pump price of petrol. can confirm th at this has startIn October, the Chief Executive ed. The queues will disappear of the Nigerian Midstream and in a matter of a few days.” Downstream Petroleum However, his promises and Regulatory Authority ( NMDassertions appear to be far PRA), Farouk Ahmed, had from present realities. promised that fuel queues will In his re action, the National soon disappear, saying that Operations Controller , stakeholders are meeting to Independent Petroleum find a lasting solution to all the Marketers Association of issues that have been raised. Nigeria ( IPMAN), Mike Osatuyi
The Authority chief dispelled blamed the scarcity on the private depots and the increasing difficulty in accessing petroleum products.
Osatuyi said that those that have to sell have had to go the ‘ extra mile’ to get supply to their filling stations.
He explained that at the moment, most LPMAN members cannot source the commodity because of the supply shortage that has lingered. Besides, he said getting petrol to members’ filling stations from the depots now costs as much as N200 per litre in some instances.
“It is a sad development. Some of my members now pay as much as N200 per litre to buy petrol from the depot, including the cost of transportation and other charges incurred. So in this situation, how much do you think we will sell petrol at the pump?”
He maintained that the fuel situation is not likely to ease unless the government finds a lasting solution to the supply issues and cost.
According to him, one way to address this is the implementation of total deregulation of the downstream sector of the oil industry.
“Total deregulation remains the best solution to ending fuel scarcity. The deregulation of the downstream sector remains the only potent and lasting solution to this scarcity.