• Marketers sell above N300/litre
• IPMAN worst hit as depot owners, MOMAN operate at a
• NACCIMA calls govt, stakeholders to find solution
Almost a month after the scarcity of premium motor spirit
threw the country into an energy crisis, indications
emerged, yesterday, that the situation may go from bad to
worse, as prices at the pump rose to over N300 per litre in
some filling stations across the country, especially those
owned by independent marketers.
Although the Nigerian National Petroleum Company
Limited had said in Abuja that 2.3 billion litres of
additional premium motor spirit were being imported into
the country to complement existing one billion litres as
part of measures to address fuel scarcity, The Guardian
gathered, yesterday, that most marketers, especially depot
owners who had made payment for products since
December last year, were yet to receive the consignment.
While the queues appeared to have abated last week, the
situation became worse from Friday, as many petrol
stations remained shut, while those that opened and sold
at the official price, had long queues of motorists waiting
to buy the product.
In Lagos, most of the stations owned by independent
marketers that were without queues sold the product for
between N200 and N250 a litre.
Amid the disruption in the distribution system, consumers
are worried about the lack of monitoring and silence on
the part of the Nigerian Midstream and Downstream
Petroleum Regulatory Authority (NMDPRA) in checking the
excesses of some of the marketers that had products but
selling above the pump price.
Multiple sources across the value chain equally confirmed,
yesterday, that the existing strategy being deployed by the
state oil firm in an attempt to enable it to recover cost
after being transformed into a limited liability company
may further worsen the prevailing situation.
Although the NNPC was expected to truck out products to
most stations in the city centres owned by the Major Oil
Marketers Association of Nigeria (MOMAN), most depot
owners instead of supplying the Independent Petroleum
Marketers Association of Nigeria (IPMAN) now prefer
selling the products at their stations in a bid to recover
losses from bank loans and new challenges that include,
payment for products in dollars, which they claimed they
have to source at the black market.
A source, who is a top member of Depot and Petroleum
Marketers Association of Nigeria (DAPMAN), who pleaded
anonymity, said though the national oil company was
trying its best to address the situation, realities are far
from claims being made in the media.
Recall that a new N500,000 Ship-to-Ship Coordination
Charge for each transhipment operation for petrol has
reportedly been introduced by NNPC, the source said most
of the depot owners now have to pay for their goods in
dollars and have borrowed money since December to pay
for products but are yet to load products three months
A memo from NNPC Limited with Ref. NNPC/ML/STS01,
dated February 18, 2022, and addressed to all marketers
with the heading, “Payment Of STS Coordination Charge”
signed by O.I O Ajilo on behalf of GGM Shipping, reads,
“Please be informed that the NNPC Management has
directed that effective 10th February 2022, the sum of Five
Hundred Thousand Naira, (N500,000.00)
Guardian also gathered that while the marketers, including
NNPC Limited, agreed to blend existing dirty fuel in the
country, which was observed around January 11 this year,
the depots appear to have enough products to effectively
blend the dirty products.
“Most depot owners that have paid for products since
December have not loaded. Usually, we have only 30 days
to pay back loans to the bank; we now have to pay interest
of above 60 days extra. Who will bear this cost? They are
telling us to bear the cost and not increase the cost of the
products. Aside from that, we were paying in naira for the
NNPC vessels we have been using, when we pay, they
load the products and send them to our depots; now we
pay in dollars. That dollar is sourced at the black market.
Who pays the difference between the official and the
black market rates? In addition to that, we now incur costs
for a ship-to-ship charge,” he said.
He challenged the NNPC to supply products across its
depot to enable IPMAN members to get products and sell
at the pump price of N165.
In most parts of the country, including the Federal Capital
Territory, black marketers are selling a litre for N400, just
as long queues persist as most spend relatively five hours
to get products.
While Nigeria is hosting global leaders in the oil and gas
sector in Abuja from today, a look through most windows
at the NNPC Tower, even from the Petroleum Minister’s
waiting room shows the horrific queues at the Conoil and
Total stations located in front of the towers.
For over a month now, it has taken the interventions of
the Police and Army to ensure sanity on the roads as the
dual road that links the Wuse area of the FCT to the
Central Business District through the NNPC tower is now
one way due to petrol queues.
Only a few fuel stations were dispensing both in the city
center and the suburbs. The few that were dispensed at
the actual pump price had very long queues.
While the price was selling for N165 per litre in the city,
most stations on the way towards the other parts of the
northern region were selling above N300 per litre.
On the Kubwa expressway and some parts of the city,
especially Jabi, Wuyi, Wuse, Central Business District,
Garki and others, few fillings were dispensing under heavy
On the airport road, Shema filling was without fuel. NIPCO
was dispensing under a long queue. Dan oil was under
lock. Oando was dispensing on the Kubwa expressway
with long queues as well as MRS. Most of the A.Y Shafa
stations along the route had no fuel.
Although the Vice President of IPMAN, Abubakar
Shettima, did not immediately respond to the request of
The Guardian, yesterday, sources at the association told
The Guardian that most members could not sustain the
N165 pump price, insisting that it is now difficult to get
Recall that the Bayelsa State government had directed all
fuel stations in the state not to sell petrol above N230 per
litre although the national price is N165 per litre. In Benin,
Conoil along the airport road was dispensing at N200
yesterday, while the NNPC along Sapele road near Protea
Hotel had long queues but was dispensing at the actual
In Lokoja, the price remained high and even worse across
small cities in the state. For instance, Olobo Global Oil,
along the old Egume road in Anyigba under Dekina local
government was selling at N230 per litre.
Decrying the situation, Managing Partner, The Chancery
Associates, Emeka Okwuosa, said it remained unfortunate
that the queues persist.
According to him, the development remained an
indication that the country lacked proactive and
competent regulators in the oil and gas industry.
“NNPC is really lagging behind in its jobs. Because of a
couple of odd toxic supplies in the system, we are back to
queues. NNPC needs to adopt a more robust approach. I
am shocked that up to date people that imported the toxic
supplies have not been sanctioned.
“We must sanction them to act as a deterrent and ensure
it does not happen again. What this also shows is that we
don’t have emergency supplies in storage to take care of
situations like this,” he said.
Okwuosa noted that the Federal Government is more
interested in paying humongous subsidies than in ensuring
supplies of our fuel needs.
The Nigerian Association of Chambers of Commerce
Industries Mine and Agriculture (NACCIMA), at the
weekend, called on the Federal Government and other
stakeholders to find a definitive resolution to the lingering
NACCIMA urged the Federal Government to stop the
importation of petroleum products and take immediate
steps at ensuring that all refineries are working in full
capacity for a definitive end to the importation of