Nigerian Petrol Prices Experience Weekend Crash at Depots Amidst Low Demand
Petrol prices in Nigeria witnessed a significant decline over the weekend, with private depots offering Premium Motor Spirit (PMS) at prices ranging from N495 to N496 per litre, compared to the previous rates of N502 to N503 per litre. The price crash comes as the country braces for a potential increase in petrol prices in July following the recent devaluation of the exchange rate. The state-owned Nigerian National Petroleum Company Limited (NNPCL) depot, however, maintained its price at N479.6 per litre.
Alhaji Abubakar Maigandi, the National Vice President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), attributed the decrease in price to a decline in demand for PMS. He expressed concern over the diminishing purchasing power of customers, particularly civil servants, who are finding it increasingly difficult to cope with the new rates.
Maigandi revealed that some depots in Lagos were selling petrol at the reduced rates of N495 to N496 per litre, while the NNPC depot continued to sell at the old rate of N479.6 per litre. He emphasized the need for importers to expedite the supply of petrol, as no fresh stocks have been received since the removal of subsidy. Maigandi warned against stock depletion, urging suppliers to ensure a consistent flow of petrol and avoid scarcity.
Highlighting the current situation, Maigandi disclosed that no petrol has been imported since the removal of subsidy, including by the NNPC. As a result, existing stocks are being utilized, raising concerns about potential scarcity. However, he expressed optimism that new stocks might arrive in July, emphasizing the government’s responsibility to prevent fuel scarcity by ensuring the availability of fresh supplies.
The major oil marketers of Nigeria recently reported a 20% reduction in PMS consumption, which dropped from 66 million litres per day to slightly over 40 million litres per day. Clement Isong, the Executive Secretary of the major oil marketers, attributed this decline to adjustments in lifestyle resulting from the increased petrol rates.
As the Nigerian petrol market experiences fluctuations in prices and demand, it remains crucial for stakeholders to monitor and address the impact on consumers and the overall economy. Efforts to ensure the availability of affordable petrol, efficient importation, and measures to stabilize prices would be vital in maintaining a balanced market and meeting the energy needs of the nation.
Source: The Nation
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