Rising Petrol Prices Cause Concern Among Marketers as Depot Rates Reach N710/Litre in Lagos

The rising price of Premium Motor Spirit (PMS), commonly known as petrol, in private depots has caused significant concern among independent petroleum marketers in Lagos. The depot price has now surged to N710 per litre, prompting a corresponding increase in pump prices at independent marketer outlets, which now range between N730 and N750 per litre.

This price hike has led to queues at some filling stations operated by major marketers and the Nigerian National Petroleum Company Limited (NNPCL), where pump prices remain comparatively lower at N610 and N568 per litre, respectively.

A survey of private depots in the Satellite and Apapa areas of Lagos revealed price variations, with the highest being at Bovas depot, which sells petrol to independent marketers at N762 per litre, followed by MRS depot at N735 per litre. Conversely, the lowest prices were recorded at Rainoil and Emadeb depots, both at N705 per litre, while the Eterna Oil and Sahara (Asharami) depots offered petrol at N701 per litre.

One independent marketer, speaking anonymously, highlighted the challenges faced by independent marketers. “Most major marketers own tank farms in Lagos and buy directly from NNPC. Scarcity has eased somewhat because NNPC mainly supplies major marketers. However, we independent marketers struggle as we rely on these major marketers for products,” he explained.

He noted that major marketers procure petrol at NNPCL rates of N548 to N550 per litre and resell it to independent marketers at prices starting from N701 per litre. This creates a significant disparity, as major marketers sell petrol at their filling stations in Lagos for N610 to N620 per litre, making the market highly competitive and challenging for independent marketers.

“Independent Petroleum Marketers Association of Nigeria (IPMAN) stations in Lagos are particularly struggling to sell due to the price difference,” he added. “Our counterparts outside Lagos benefit from the higher prices they can charge over there.”

The National President of IPMAN, Alhaji Abubakar Migandi Garima, confirmed in a telephone interview that while supply issues have eased, the allocation from NNPCL remains insufficient for all IPMAN members. Consequently, many independent marketers must purchase from private depots, leading to higher pump prices at their stations.

To stay competitive, some independent marketers have partnered with major marketers to secure petrol at NNPC rates, ensuring they can maintain operations despite the challenging market conditions.

The continuous fluctuation in depot prices and the resultant impact on pump prices underline the ongoing volatility in Nigeria’s fuel market, affecting both marketers and consumers alike.