Petrol price hits N1000 per liter in Abuja

The downstream sector of the petroleum industry faced escalating woes as a severe scarcity of Premium Motor Spirit (PMS) struck the Federal Capital Territory (FCT) yesterday.

This crisis unfolded within 24 hours of the Nigerian National Petroleum Company Limited (NNPCL) refuting claims of a subsidy reintroduction on PMS. A majority of filling stations remained shuttered, with lengthy queues forming at the scarce outlets dispensing fuel to anxious motorists.

Following a meeting between marketers and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), black marketers resurfaced, selling the product in kegs at an exorbitant price of N1,000 per litre.

At the pump, prices surged, with independent retailers selling PMS at N625 per litre, while NNPCL dispensed at N613. This recent development contradicted President Bola Tinubu’s earlier assurance that petrol prices would remain stable despite deregulation in the downstream market.

Marketers expressed grave concerns about the struggling businesses within the sector, highlighting the disparity between the current pump price of PMS and market realities. They attributed the dominance of NNPCL to their access to foreign exchange, which other marketers struggled to obtain through the Importers and Exporters (I&E) window.

Furthermore, the marketers urged the government to curb the dollarization of local activities, particularly by the Nigerian Maritime Administration and Safety Agency (NIMASA) and the Nigerian Ports Authority (NPA). The situation remains critical, prompting heightened public and industry concern.