Fuel Depots Running Out Of Petrol Due To Increased Prices: Oil Marketers

Many fuel depots in the country don't have enough petrol as its price hiked to ₦720 per liter, oil marketers say.

Benneth Korie, the president of the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA), said most depots were deserted or out of stock.

"Depot owners are so terribly affected by the increasing cost of crude oil and exchange rate, to the extent that many depots are practically deserted as their owners are unable to secure bank loans to fund their business due to high-interest rates," Korie said at the national executive council meeting Thursday, Punch reported.

Due to instability, galloping rates of foreign exchange and high levels of the dollar, banks reportedly are not providing loans to depot owners.

"Worst hit are filling stations whose owners find it extremely difficult to secure funds to procure products for their retail outlets. Both the independent and major marketers are so terribly affected," he noted.

Korie added that many filling stations are getting shut on a daily basis and dealers are going out of business. They are on the verge of bankruptcy and are unable to "secure funds to facilitate orders for their stations."

He urged the federal government to intervene immediately and provide some relief before the economy collapses.

PETROCAM Trading (Nig)'s chief executive officer, Patrick Ilo, said he imported 52,000 metric tons of petrol on Tuesday when the cost was ₦720 per liter without subsidies but he feels trapped now.

"This is the second time I am bringing in my vessel. But after bringing it in, I am trapped. I can't sell it because I landed my own product at ₦720. And if you add transportation from depot to station, the value today should be ₦729/litre at the pump," he explained.

"But I cannot sell. Why? Because of the price NNPC is selling. NNPC to my mind, they are still subsidizing. NNPC is quietly subsidizing the market. And I don't blame the government. It is when we have a stable government that there could be prosperity," he added.

The decision to remove fuel subsidies was first announced by former president Muhammadu Buhari in 2022 as part of fiscal and petroleum sector reforms, but the plan was abandoned because of fears of protests ahead of the presidential election this year.

However, after President Bola Tinubu came into power in May, he announced removed the subsidy. In June, Tinubu acknowledged that the decision would be painful for Nigerians but asked them to bear with him in order to provide regular power supply, better healthcare, transport infrastructure and education.

Earlier, the petrol price was ₦195 per liter. It skyrocketed to ₦600 per liter after the announcement.