Queues for Premium Motor Spirit (petrol) emerged in Abuja, parts of Niger, and Nasarawa States on Friday due to the closure of many filling stations run by independent marketers. These closures followed a price hike to ₦710/litre by private depot owners.
Motorists flocked to the few stations still dispensing petrol, especially those operated by the Nigerian National Petroleum Company Limited (NNPC) and major oil marketers in Abuja and nearby states. This resulted in long queues at stations such as the NNPC mega station on the Gwarimpa axis, Conoil and Total stations opposite NNPC headquarters, and Salbas station at Dei-Dei on the Zuba-Kubwa expressway.
Independent marketers, who own over 70% of the country’s filling stations, attributed the situation to the increased ex-depot price of petrol by private depot owners. Abubakar Maigandi, National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), explained that private depots raised the ex-depot price to ₦710/litre, while NNPC retail stations sell at ₦617/litre. This price discrepancy makes it difficult for independent marketers to compete.
Maigandi noted that the high cost at private depots, combined with transportation costs, forces independent marketers to sell at higher prices than NNPC stations, leading to queues. He added that the limited supply from NNPC to IPMAN members exacerbates the issue.
Although IPMAN is negotiating for more direct supplies from NNPC, the current volume is insufficient for their numerous outlets. Maigandi assured that petrol is not scarce in the country, attributing the queues to market challenges. He expressed confidence that increased supply from NNPC would resolve the issue.
Officials at the Federal Ministry of Petroleum Resources and NNPC confirmed adequate in-country petrol supplies, attributing the queues to market dynamics in a deregulated sector.
