Fuel queues have returned nationwide following the #EndBadGoverrnance protest that began on Thursday, August 1, causing widespread disruption in the supply of petroleum products.
The queues return as oil marketers in Nigeria raised alarms over the exorbitant prices they are forced to pay for petroleum products from depot owners.
The protests led oil marketers to halt the distribution of fuel to prevent potential losses to their assets.
Despite the National President of IPMAN, Abubakar Maigandi, urging independent marketers to continue their operations and calling on security agencies to protect their facilities, security concerns prompted a halt in fuel sales.
As a result, long queues of vehicles seeking fuel have been reported in major cities including Lagos, Abuja, Katsina, and Delta.
Motorists expressed frustration over the erratic fuel supply, which has made planning difficult.
The scarcity has been exacerbated by protests that led to the closure of filling stations due to fears of possible attacks.
In some areas, independent petroleum marketers have taken advantage of the shortages to hike petrol prices significantly.
Chief Corporate Communications Officer of the Nigerian National Petroleum Company Ltd (NNPCL), Mr Olufemi Soneye, attributed the supply issues to a hitch in the discharge operations of some vessels.
He assured us that the company would work with stakeholders to resolve the situation and restore normalcy.
Over the weekend, marketers operating under the Independent Petroleum Marketers Association of Nigeria (IPMAN) highlighted that they are currently at the mercy of the Depots and Petroleum Products Marketers Association of Nigeria (DAPPMAN).
They accused DAPPMAN of selling products at inflated prices, which they say leaves little room for profit and forces them to raise prices at the pump.
Speaking anonymously, some marketers alleged that there is collusion among the Nigerian National Petroleum Company Limited (NNPCL), DAPPMAN, and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
They called on President Bola Tinubu to take a keen interest in the activities of these stakeholders to address the issue.
Findings show that NNPCL, the sole importer of petroleum products in Nigeria, provides Premium Motor Spirit (PMS), commonly known as petrol, to private depot owners at an ex-depot price of N556.5 per litre.
However, these depot owners then sell the petrol to marketers at prices ranging from N700 to N740 per litre. This pricing structure leaves marketers with minimal profit margins and compels them to sell at higher prices to consumers.
Reflecting on past practices, the marketers recalled when NNPCL used to allocate petroleum products to independent marketers through depot owners, who were required to sell at a benchmark price.
They urged the federal government to reinstate such measures to ensure fair pricing and stable supply.
One marketer lamented, “Now, the independent marketers have no allocation; they are at the mercy of the tank farm owners.
“A situation where there is no ex-depot price won’t augur well for the industry. Private depot owners now sell at N800 to those of us who will sell at retail outlets to ordinary Nigerians. We are the ones Nigerians are accusing of hoarding products and selling at exorbitant prices.”
The marketers expressed hope that the Dangote Refinery, once operational, would alleviate the supply issues.
