The Nigerian National Petroleum Company Limited (NNPCL) has warned the public against panic buying of the premium motor spirit (PMS), also known as petrol, stating that it has about 1.5 billion litres of the product which would be sufficient for 30 days’ supply.
This was disclosed in a statement by the company, noting that queues across fuel stations in the country have reduced significantly over the measures it has taken to address supply scarcity.
The company further noted that it is collaborating with relevant agencies, the Nigerian Mainstream and Downstream Petroleum Regulatory Authority (NMDPRA), labour unions and security agents to address uncompetitive practices and hoarding by marketers and distributors.
In the past week, Nigerians have had to queue for petrol due to shortages in the supply of the product, resulting in a significant increase in its pump price across the country.
Although the NNPCL stated that the scarcity would be over in three days, blaming the shortages on logistical and distribution issues. However, the scarcity has lingered on and resulted in a significant increase in transportation costs for members of the public.
An investigation by Nairametrics revealed that petrol sold for over N700 per litre in Abuja, Lagos and Ogun states. In some places, the price of petrol was as high as N1500 per litre in the “black market” last week.
Furthermore, Nairametrics also reported significant increases in transportation costs following the scarcity and resultant hike in petrol prices. In some cases, the increase in transport fares was as high as 100% and on average there was a 50% increase in transport costs following the scarcity of petrol in Lagos.
Also, the scarcity in transport costs also brought to the fore the discussion on resumption in payment of subsidy for petrol after the removal in 2023. The CEO of Rain Oil, Mr Gabriel Ogbechie, had earlier stated that the Federal Government was spending around N600 billion monthly on fuel subsidy, mainly due to the significant depreciation of the naira.