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Fuel Queues Return as Marketers Halt Imports Amidst Forex Crisis.

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Fuel Queues Return as Marketers Halt Imports Amidst Forex Crisis.

Reports indicate a resurgence of fuel queues in parts of Lagos State due to a halt in the importation of Premium Motor Spirit (PMS), commonly known as petrol, by oil marketers. This cessation in imports is attributed to the ongoing forex crisis.

It has been revealed that only the Nigerian National Petroleum Company Limited (NNPCL) is currently importing PMS, leading to shortages at numerous depots and filling stations, resulting in long queues at outlets with available fuel.

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The Chief Executive Officer of PETROCAM Trading (Nig) Ltd., Patrick Ilo, disclosed that his company recently imported 52,000 metric tonnes of petrol at N720 per litre without subsidies. He highlighted that this pricing renders it impossible for his company to sell at the prevailing Nigerian National Petroleum Company Limited (NNPCL) price.

Given the landing cost, Ilo argued that the NNPCL is effectively subsidizing the product, and he understood the government’s position.

He further explained that in the past, marketers could influence the NNPCL to increase prices to reflect the actual market value when they imported products. However, the NNPCL has recently declined to adjust prices to align with the current market conditions. Consequently, most marketers cannot import the product, and those who do import find it challenging to sell due to the increased landing cost.

These developments have raised speculation that the government may have quietly reinstated the subsidy regime, although there has been no official confirmation.

Marketers contend that the current petrol price is sustained because the government subsidizes the commodity.

Additionally, it has been noted that the NNPCL is currently operating numerous retail outlets and struggling to meet the demand, making it challenging to supply third parties.

This situation has resulted in fuel queues returning to some areas of Lagos State. Marketers emphasize that planning and measures are required to address the challenges faced by the sector.

In summary, fuel shortages and queues have reappeared in parts of Lagos State as oil marketers halt imports due to a forex crisis and pricing challenges, with speculation of a quiet return to the subsidy regime.

Fuel Queues Return as Marketers Halt Imports Amidst Forex Crisis.

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