The pump price of Premium Motor Spirit (PMS), commonly known as petrol, is expected to decrease in filling stations operated by independent marketers this week.
This development follows significant PMS imports by the Nigerian National Petroleum Company Limited (NNPCL), according to statements from oil dealers on Saturday. Punch Reports
The recent surge in petrol prices at retail outlets run by independent marketers was attributed to a shortage of the commodity, resulting in profiteering practices by both depot owners and filling stations.
However, downstream oil sector operators have now confirmed that numerous cargoes imported by NNPCL have arrived in Nigeria, with some currently being discharged at the ports.
Chief Ukadike Chinedu, the National Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria, explained to our correspondent on Saturday night that once the imported products start reaching filling stations, fuel prices are expected to decrease.
He emphasised that the recent high costs were primarily due to a drop in supply.
Earlier in the week, oil marketers attributed queues for petrol at filling stations in Abuja, Nasarawa, and Niger states to the low supply of PMS by its sole importer, NNPCL. However, the national oil company countered this, arguing that the queues were a result of a “price war.”
With the latest news of increased imports by NNPCL, industry operators now predict that not only will the queues disappear, but there will also be a reduction in prices at independent filling stations.
Presently, petrol is predominantly sold at prices ranging between N580 and N613 per litre at NNPCL-operated filling stations, while other marketers often charge higher rates, reaching as much as N670 per litre.
Chief Ukadike emphasised that the Yuletide influx of foreign exchange is not expected to impact petrol prices significantly.
Instead, the key factor influencing a potential reduction in prices is the substantial increase in imports by NNPCL, as communicated to marketers by the national oil company.
Responding to questions about whether marketers had started receiving the imported products, Ukadike stated, “By Monday, we will start receiving from Port Harcourt and Warri, based on my last discussion with the NNPC management.”
Echoing this sentiment, another major marketer affirmed that saturating the market with products would eliminate room for profiteering. NNPC’s Chief Corporate Communications Officer, Olufemi Soneye, also reiterated that the recent tightness in Abuja was a result of a typical price war in a competitive market, with NNPC retail selling at N613 per litre and other marketers offering prices ranging from N625 to N650 per litre.
