Nigeria is on the brink of another fuel scarcity as licensed oil marketers engaged in petrol importation have decided to halt operations. The marketers attribute this decision to the escalating landing cost, now surpassing N1,000 per litre, which exceeds the current fixed prices of N568 or N617 set by the Nigerian National Petroleum Company (NNPC) Limited.
According to an insider, “For more than four months now, no other importer has brought in the product except the NNPC Ltd.” The licensed oil marketers contend that the high landing cost, coupled with the government’s insistence on fixed prices, has created an unsustainable situation, leading to significant losses for them.
The oil marketers argue that the government has effectively reintroduced the petrol subsidy, suggesting that the realistic petrol prices should be around N1,200 per litre, not the capped N617. Maintaining the government-fixed price at not more than N700 would result in substantial financial losses for the importers, discouraging them from continuing with petrol importation.
In response to these claims, the Nigerian National Petroleum Company Limited (NNPCL) denied the reintroduction of the petrol subsidy and refuted any clash with oil marketers. Olufemi Soneye, the Group Communications Officer at NNPC, emphasized, “NNPC Ltd emphasizes it has not clashed with any party. The Punch headline is deemed unfortunate. The publication sought confirmation on the alleged subsidy reduction, to which NNPC responded that the subsidy has been entirely removed.”
The standoff between oil marketers and NNPC raises concerns about the sustainability of petrol importation and the potential consequences for fuel availability in the country. The situation highlights the challenges in balancing market forces, pricing mechanisms, and the economic realities faced by both the government and oil marketers.
