Fuel scarcity is gradually emerging in Lagos and other regions of the country as private depot owners have increased the ex-depot price of petrol from N630 to N720 per litre.
This development has exacerbated the fuel shortage in Abuja and neighboring states, with some filling stations charging as much as N900 per litre for petrol.
Correspondents report that several filling stations in Lagos, Ogun, and other states have depleted their stock, refusing to purchase the high-priced fuel from private depots. Speaking to one of our correspondents on Sunday, Hammed Fashola, National Vice President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), explained that many stations remained closed due to a lack of fuel.
Fashola urged the Nigerian National Petroleum Company Limited (NNPC), currently the sole importer of petrol, to clarify the situation. “Those that shut their stations do not have fuel to sell. When you don’t have fuel, you cannot open your station. That is the problem. The NNPC is the sole importer of this product. It is in the best position to tell us what is actually going on,” he said.
“Currently, independent marketers cannot afford the prices set by private depots, which range between N715 and N720 per litre. Considering transportation and other depot expenses, it becomes too costly for them, leading to station closures. Some marketers refuse to buy because they know the masses cannot afford high-priced petrol in this economy,” Fashola added.
Previously, private depot owners sold PMS to independent marketers at N630-650 per litre, while the NNPC supplied major marketers at a price below or around N600. Despite multiple appeals from IPMAN leaders for direct supplies from the NNPC, similar to major marketers, the NNPC has not yet responded to these requests.
Fashola advised Nigerians against panic buying and urged them to purchase only what they need to ensure the fuel in circulation is sufficient.
Reports indicate that major marketers sold petrol for under N650, while independent marketers priced it between N750 and N800 per litre. Multiple officials confirmed that NNPC officials had visited various depots in Apapa on Friday, instructing depot owners to prioritize fuel supply to Abuja, where queues were first noticed.
Over the weekend, many trucks were diverted to Abuja to alleviate the queues in the FCT, resulting in limited supply for Lagos and other areas. An official disclosed that the NNPC was rationing PMS to depots due to the supply gap.
This situation follows a recent Reuters report stating Nigeria’s debt to petrol suppliers has exceeded $6 billion, double the amount since early April, as the NNPC struggles with the gap between fixed pump prices and international fuel costs. Although the NNPC denied this, Reuters reported that the company has been struggling with payments for January imports, amounting to between $4 billion and $5 billion.
“Traders are tolerating this because of the $250,000 per month compensation for late payments,” an industry source noted. At least two suppliers have stopped participating in recent tenders after reaching their debt exposure limits to Nigeria, implying they will not send more PMS until payments are received.
Nigeria’s tenders for gasoline in June and July were smaller, with the NNPC importing about 850,000 tonnes in July, down from the typical one million tonnes in previous months. Meanwhile, PUNCH findings reveal that some marketers are refusing to supply petrol to independent marketers due to limited supplies from the NNPC. “We focus on our filling stations, receiving less than 50% of our usual supply from the NNPC. We prioritize our stations before considering independent marketers, who are consequently out of stock,” a depot operator disclosed on condition of anonymity.
The operator stated that the few depots supplying IPMAN members are selling at higher prices due to demand surpassing supply.
Our correspondents report that as of Sunday, queues were reappearing in Lagos, causing concern among residents who recall the severe fuel scarcity that nearly halted the economy in May.
During visits to various fuel stations across the state, it was noted that some stations had increased their PMS prices.
Fresh queues emerged in Abuja, parts of Niger, and Nasarawa states on Friday, following the closure of many independent marketer-operated stations due to the ex-depot price hike to N710/litre by private depot owners.
Motorists flocked to the few stations dispensing petrol on Friday, particularly those operated by the Nigerian National Petroleum Company Limited and major oil marketers in Abuja and neighboring states.
This situation began to extend to Lagos. Along the Ikotun to Egbeda axis, only two out of about ten fuel stations were dispensing at the time of reporting. At Ikotun, an NNPC outlet selling at N568 per litre had long queues, while others were not dispensing. On the Igando-Ikotun axis, a Petrocam outlet sold petrol at N820 per litre.
The PUNCH observed a TotalEnergies outlet on Mushin Road, Isolo, selling fuel at N615 per litre with a long queue of buyers.
Meanwhile, a Technoil station at Isolo Bustop was not selling fuel, and the NNPC station on the same axis, selling at N568 per litre, was crowded with cars.
There were no attendants at an AP station on Okota Road, which was closed at the time of reporting. The Al Morouf station on Ilasa Road only served a few customers.
A motorist, Mr. Emmanuel Anyebe, commented, “They said they removed the fuel subsidy, and we expected a similar improvement as seen in the telecommunications sector, but that didn’t happen. There isn’t any real scarcity; the issue is distribution. Stations claim they haven’t received their full orders. This is causing unnecessary suffering and wasting people’s time.”
The PUNCH found that the AP Fuel Station at Ilasamaja had intermittent sales on Sunday. The station sold fuel in the morning but stopped in the afternoon, resuming sales in the evening. Customers willing to pay a premium could get five litres at N4,000.
“We sold at N615 per litre today but have stopped for now. However, if you’re desperate, we can sell at a higher rate,” a customer attendant at the AP Fuel Station disclosed.
At the General Fuel Station in Sadiku, there was no fuel available, worsening the scarcity in Lagos. A motorist named Segun in Akowonjo, Lagos, told our correspondent he bought fuel at N650 per litre, noting the unbearable queues.
“I paid N650 per litre, and it’s frustrating because it’s been like this for a long time. The government needs to address this, but we have no choice,” he said.
A commercial driver, Timothy, said he bought fuel at Petrocam in Ikeja for N670. “Prices keep rising, the dollar is high, and producers are hoarding fuel. Prices might go even higher,” he stated.
In Ogun State, our correspondent found petrol prices ranging from N700 to N800 amid long queues. A resident, Emmanuel Ogbonna, reported that Ebefem fuel station in Abeokuta sold petrol at N720 per litre.
Emmanuel expressed frustration over the renewed fuel scarcity. “I bought fuel at N720 at Ebefem. There was no queue, but major stations like NNPC were not dispensing. It seems petrol is scarce again,” he said.
A fashion designer in Abeokuta, identified as Ibrahim, said he bought fuel at N750 from a private station. “My apprentice got fuel at N750 from Oyinkansola. This is affecting my business,” he said. Further checks in the Oloka area of Imeko-Afon revealed petrol being sold at N850 per litre.
Border Petrol Prices and Fuel Scarcity: A National Overview
The Federal Government’s decision to ban the supply of petroleum products within 20 kilometers of Nigeria’s borders has led to skyrocketing fuel prices in these areas. Akinola noted, “Over the years, petroleum products have been costly in border communities due to the 20km ban on crude supply.” Currently, the last permitted station sells fuel at N850, while in border towns like Ilara, petrol costs N1,500 per litre, severely impacting residents.
Ado-Ekiti Stations
In Ado-Ekiti, Ekiti State’s capital, many petrol stations have not been dispensing fuel for several days. The few stations selling fuel have long queues, especially where prices are relatively lower, ranging from N650 to N760 per litre over the weekend.
A motorist, Olaniyi Olaogun, remarked, “We’ve been facing this fuel shortage for days with no explanation. I bought fuel at N650 per litre in Adebayo area, and the queue was incredible. Only NNPC sells at N580 per litre; others are above N600. NNPC along Iworoko Road sold at N580 on Friday,” he said.
Mrs. Lydia Igbala, another car owner, reported buying fuel at N750 and N760 per litre at different locations on Saturday and Sunday.
Kwara State
In Ilorin, Kwara State, petrol was available on Sunday with prices ranging from N600 to N750 per litre. The AP station at Murtala Mohammed Road sold at N620 per litre, MJK at N750, MRS at Unity Road at N600, and Abanik at Sawmill at N660. Other stations like Shafa sold at N700, Rain Oil at N720, Tigress at N750, and Bovas at N670 per litre. Diesel prices ranged from N1,450 to N1,700 per litre, and kerosene was sold at N1,650 per litre.
Benin, Edo State
In Benin, independent marketers sold PMS between N700 and N730 per litre, while major marketers sold between N660 and N680. Prices were higher in Edo North, reaching N730 to N900 per litre by independent marketers, and in Edo Central, between N750 and N850 on Sunday. The NNPCL station sold at N591 per litre, but with long queues. In Rivers State, NNPC stations sold at N591 per litre, while others sold between N750 and N760.
Sokoto
In Sokoto State, long queues reappeared at the NNPC mega station, selling at N620 per litre. Other stations that previously sold fuel between N720 and N750 now sell between N850 and N900. In Kaduna, prices ranged from N720 to N800 along the Sabon-Tasha expressway. NNPC Mega stations sold at N620 per litre, but with long queues. On the black market, petrol costs N4,000 to N4,500 per gallon, depending on the location within Kaduna.
Abuja Scarcity Lingers
In Abuja, some stations far from the city center dispensed petrol at N900 per litre on Sunday as the scarcity persisted in the FCT and neighboring Nasarawa and Niger states. Hundreds of motorists flocked to stations operated by major dealers like Nipco, Salbas, and Conoil to buy petrol at N660 to N690 per litre, while smaller stations sold at higher rates. A station along Kubwa Village market road sold at N900 per litre with shorter queues compared to major dealers. Attendants at the Kubwa station confirmed the situation as described by the National President of the Independent Petroleum Marketers Association of Nigeria.
NNPC spokespersons did not immediately respond to calls and messages seeking comments on these developments on Sunday.
Rising Fuel Costs and Distribution Challenges
Abubakar Maigandi revealed that the ex-depot price of petrol has surged to over N710 per litre. He explained, “The price at depots exceeds N710 per litre, and we must also account for transportation costs from Lagos, Port Harcourt, or Warri to Abuja, in addition to other operational expenses. Considering all these factors, it’s impossible to sell at even N800 per litre and still achieve a reasonable margin. This mainly affects independent marketers operating smaller stations, unlike major marketers with their private depots, who can sell at lower prices,” stated an attendant named Austin.
The President of the Independent Petroleum Marketers Association of Nigeria (IPMAN) mentioned that some dealers have closed their retail outlets because they cannot access petrol due to the hike in the ex-depot price to N710 per litre by private depot owners. He noted that while private depot owners have increased the ex-depot price to N710 per litre, the pump price at NNPC retail stations remains at N617 per litre.
Maigandi elaborated, “The current situation is caused by private depot owners selling their products at a high price. It has become very difficult for independent marketers to get the product and sell it in Abuja, neighboring states, and other northern regions. The queues you see now are due to the high cost of PMS at private depots. Private depots sell at N710 per litre, but NNPC retail outlets sell at N617 per litre. By the time we buy from private depots and bring it to our stations, we cannot sell at a competitive price because our cost is already so high.”
He continued, “When we purchase at N710 per litre, we must add transportation costs because there is no equalization. This raises the pump price beyond the ex-depot price of N710 per litre, whereas NNPC stations sell at N617 per litre.”
Maigandi highlighted that the large number of stations operated by IPMAN means that any disruption in product supply to its members leads to fuel queues, as major marketers and NNPC stations are fewer in number. On whether IPMAN members can receive direct PMS supply from NNPC instead of buying from private depots, he responded, “We have been negotiating with NNPC, and they promised to start giving us our allocation. They have begun, but the quantity is insufficient for our numerous retail outlets.”
He emphasized, “We are requesting additional volumes because in Abuja alone, we have over 250 retail outlets operated by IPMAN members. This doesn’t include Niger, Kaduna, and other northern states, let alone the nationwide count.”