In a dramatic surge, petrol prices at many independent filling stations across Nigeria have skyrocketed to between N900 and N1,000 per litre, sparking widespread concern and prompting the Federal Government to take a hard stance against exploitative pricing practices.
These sharp price increases have caused significant disparities between independent outlets and stations operated by the Nigerian National Petroleum Company (NNPC), where prices remain between N568 and N617 per litre. The substantial price gap has led to long queues at NNPC stations as consumers seek to avoid the exorbitant rates charged by independent marketers.
Reacting to the situation, the Federal Government, through the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), has vowed to clamp down on fuel stations selling petrol at inflated prices. The agency emphasized that such profiteering practices are not in the best interest of the Nigerian public.
NMDPRA spokesperson, George Ene-Ita, dismissed the claims by independent marketers who argue that they are compelled to raise prices because they purchase petrol from private depot owners at prices as high as N850 per litre. Ene-Ita asserted that the regulator’s data from depots across the country does not support these high price claims, insisting that the official prices reported by NMDPRA field agents are significantly lower.
“Our field agents monitor and publish depot prices daily, and they are not anywhere near N850 per litre,” Ene-Ita stated. He warned that any filling stations caught selling petrol at exorbitant prices would face immediate shutdown. “If we identify these outlets, we will take decisive action to close them down. NNPC informs us of their ex-depot prices, and there is no justification for such extreme price hikes at the pumps.”
Ene-Ita further highlighted that the current price levels, where independent marketers are charging up to N1,000 per litre, are indefensible, especially considering that NNPC’s ex-depot prices should keep pump prices below N650 per litre.
The situation has been exacerbated by an ongoing fuel supply crisis, with limited availability of petrol from NNPC forcing private depot owners to inflate prices. Consequently, independent marketers, unable to source fuel directly from NNPC at the more affordable rate of around N570 per litre, are passing on the higher costs to consumers.
This abnormal pricing environment has led to a scenario where many filling station owners are reaping substantial profits amidst the crisis, exploiting the inability of regulators to enforce standard pricing across the board. With the current imbalance between supply and demand, experts predict that prices will remain high in the short term, allowing independent marketers to continue capitalizing on the situation.
“With the current low supply and high demand, prices are bound to remain elevated,” a source revealed to The PUNCH. “Marketers are using this period to increase their margins, knowing that the regulatory oversight is limited due to the ongoing crisis.”
The NMDPRA has issued a stern warning to marketers involved in such profiteering practices, urging them to desist as the agency ramps up efforts to bring stability and fairness back to the market.
