Petroleum marketers have raised concerns that Premium Motor Spirit (PMS), commonly known as petrol, may not be sold below N1,500 per litre under current conditions. The President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Dr. Billy Harry, explained that the current supply levels are unsustainable, with a significant gap between the cost-reflective price and the current pump price of N617 to N820 per litre.
Harry emphasized that petrol is not sold for less than $1 per litre anywhere in the world, making it financially unfeasible to sell at current prices in Nigeria. He attributed the scarcity to the challenges marketers face in accessing foreign exchange from the Central Bank of Nigeria (CBN), which has led many to halt petrol imports. Harry also highlighted that the government and the Nigerian National Petroleum Company Limited (NNPCL) are absorbing the financial burden to maintain supply.
Amid the ongoing supply crisis, Harry expressed hope that recent discussions with local refineries might provide some relief to the petrol market. However, he could not specify when these refineries, including those in Port Harcourt and Warri, would begin refining and selling products to marketers. The union leader also called on President Bola Tinubu to convene a stakeholders' meeting to devise strategies for improving access to petroleum products.
The National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Alhaji Abubakar Maigandi, blamed recent protests for exacerbating the petrol scarcity. He noted that these demonstrations disrupted loading and haulage operations, leading to longer queues and higher prices at private depots in Lagos and Port Harcourt. Maigandi also expressed uncertainty about when local refineries and the Dangote Petroleum Refinery would start operations and at what price they would sell petrol.
