An oil and gas expert says the current petrol pricing does not reflect market realities, noting that this is the major cause of the current fuel scarcity.
Adetunji Oyebanji, Chief Executive Officer of 11 Plc, said this in a telephone interview with Nairametrics on Monday, stating that the ongoing fuel crisis in the country is worsened by a mix-up of politics and economics in petrol pricing.
According to him, the price for diesel and petrol are usually similar in the international market, lamenting that the Nigerian National Petroleum Company Limited (NNPCL) pegs the price at N600 per litre in Nigeria, which is not sustainable.
Accordingly, he observed that this means NNPC may be failing to meet its obligations to marketers, thus leading to supply shortages at filling stations across the country.
- “The thing is in Nigeria, we mix politics and economics, so nothing is ever straightforward. If you’re looking at things purely from an economic perspective, the international prices of fuel and diesel are usually close to together.
- “But in Nigeria, NNPC continues to sell PMS at N600, which does not reflect the true market cost. To me, it looks like NNPC is struggling to meet the requirements of the marketers.
- “What I think we have now is the political price, not necessarily what the market should be doing. Of course, I can’t say I am oblivious of what Nigerians are going through. My position always is that what the NNPC is doing is not sustainable. Because if you don’t price appropriately, it won’t matter,” he said
NNPC failing to supply Marketers
Moreover, Nairametrics had reported that oil marketers blamed the fresh scarcity of petrol, which is currently being experienced in some parts of the country, on supply challenges from the NNPC Limited, the major oil supplier.
National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, while featuring as a guest on a Channels Television breakfast programme, The Morning Brief, noted that the supply challenge has not been resolved. He, however, acknowledged the efforts by NNPC to solve the problem.
- “NNPC has its outlets that they also serve. So, if they have some logistics issues, that will possibly be what is internal to NNPC. But as for us, PETROAN members, we can tell Nigerians for real that if we have petroleum products delivered to us, supply to us upon payment for those same products, we will supply to Nigerians,” Gillis-Harry said.
Fuel Scarcity across Nigeria
Nairametrics also reported that fuel scarcity continues to worsen in Lagos, Ogun State, Abuja, and some other parts of the country despite claims by the NNPC Limited that all issues have been resolved.
- Recall that last week, the spokesperson for NNPC, Olufemi Soneye, issued a press release stating that all factors responsible for fuel scarcity had been resolved, and there was an excess supply of petrol in the country.
- However, Nairametrics observed that in Lagos, fuel stations are selling petrol for as high as N850 to N900 per liter in locations such as Maryland, Ikeja, Agege, Iyana Ipaja, and other outskirts of Lagos.
- In Abuja, Nairametrics observed long queues at filling stations along Abuja Airport Road, Lugbe, and Nasarawa-Abuja Road.
- In addition, black marketers stood along the way, selling to wearied motorists for as high as N1,500/per liter.
