FG to Crack Down on High-Priced Filling Stations as Fuel Costs Surge to N1,000/Litre
Independent petrol stations across the country have recently set the price of Premium Motor Spirit (PMS) between N900 and N1,000 per litre. This marks a significant increase compared to the rates at Nigerian National Petroleum Company (NNPC) stations, where prices range from N568 to N617 per litre, often causing long queues.
In response to public outcry over these inflated prices, the Federal Government has pledged to close down any filling stations caught charging excessively. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has stated that such high prices are unacceptable and that it is crucial for marketers to avoid profiteering.
Independent marketers argue that the high prices are due to purchasing petrol from private depots at around N850 per litre. However, NMDPRA spokesperson George Ene-Ita counters this claim, stating that the prices reported by their field agents are lower and that stations charging above N650 per litre are engaging in unfair practices.
The NMDPRA has warned that any stations found charging these exorbitant rates will face closure. Ene-Ita emphasized that the prices should align with those set by NNPC, and there is no justification for such high retail prices.
Despite the regulatory pressure, independent marketers are capitalizing on the current supply issues. Due to reduced supply from NNPC, private depots have increased their prices, leading to higher costs for consumers. This situation has led to significant profit margins for filling station owners, despite the ongoing fuel crisis.
Marketers have reported that they are only receiving a fraction of their orders from depots, exacerbating the supply shortage. As a result, prices remain high, with some stations selling petrol for N900 to N1,000 per litre, particularly in remote areas.
In Lagos and other states, independent stations are consistently charging between N900 and N1,000 per litre, while major marketers sell at around N700 per litre. The shortage has led to increased transport costs and bus fare hikes due to the high cost of fuel.
Additionally, reports from Abuja indicate that the Federal Government is prioritizing fuel distribution to the capital to alleviate long queues, although supply issues persist. Despite claims of hoarding, station managers argue that fuel storage is impractical due to evaporation losses and the rapid turnover of stock.
Overall, the situation remains tense as both regulators and consumers grapple with high fuel prices and supply disruptions.
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