The Federal Government of Nigeria has announced its intention to close down filling stations that are found to be selling petrol at exorbitant rates. This warning comes in response to independent oil marketers who have set pump prices for Premium Motor Spirit (PMS), commonly known as petrol, between ₦900 and ₦1,000 per liter, significantly higher than the prices at Nigerian National Petroleum Company (NNPC) stations, which range from ₦568 to ₦617 per liter.
The move by independent petrol dealers to hike prices has sparked concerns across the country. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has declared that it will take action against those inflating prices, stating that such practices are not in the interest of Nigerians.
Independent oil marketers have defended their actions by claiming that they have been purchasing petrol from private depot owners at prices as high as ₦850 per liter, a situation that has forced them to sell at higher rates. However, the NMDPRA spokesperson, George Ene-Ita, disputed these claims, noting that the prices reported by field agents at depots are significantly lower than ₦850 per liter.
The NMDPRA has also pointed to a low supply from the NNPC as a factor leading private depot owners to raise their prices. The agency warned that it would not tolerate profiteering practices and would take action against any operators found guilty of overcharging consumers.
This development highlights the ongoing challenges in Nigeria’s fuel supply chain, with potential implications for the broader economy and consumer welfare.
Written by: Blossom Kugbere
Edited by: Chris Odjomah