The retail price of Premium Motor Spirit (PMS), commonly known as petrol, may exceed N1,000 per liter at filling stations due to an increase in the cost of the commodity at private depots to between N920 and N950 per liter.

This development coincides with protests in Abuja on Monday, where demonstrators demanded the immediate dismissal of the Group Managing Director of the Nigerian National Petroleum Corporation Limited (NNPC), Mele Kyari, due to the ongoing fuel scarcity in the country.

It Is understood that NNPC has communicated to oil marketers the financial challenges associated with petrol importation. This has raised concerns among dealers, who fear that NNPC may cease petrol importation.

NNPC’s spokesperson, Olufemi Soneye, previously acknowledged the financial strain faced by the national oil company. NNPC is the sole importer of PMS into Nigeria and bears the burden of fuel subsidies amounting to several trillion naira.

“NNPC Ltd is experiencing financial challenges attributed to the costs associated with PMS supply, which jeopardizes the sustainability of its supply chain. The company has recognized recent media reports highlighting its substantial debts to petrol suppliers. This financial burden has created significant pressure on NNPC Ltd and threatens the reliability of fuel supply.

"In accordance with the Petroleum Industry Act, NNPC Ltd is committed to fulfilling its responsibilities as the supplier of last resort, thereby safeguarding national energy security. We are working closely with pertinent government agencies and other stakeholders to ensure a steady supply of petroleum products across the country," Soneye remarked on Sunday.

Marketing professionals have reported that representatives from the oil company have notified petrol dealers about recent developments, indicating that this could potentially result in an increase in petrol prices at the pump in the near future.

Ukadike Chinedu, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, remarked, “Currently, only NNPC Trading is responsible for importing petrol, and they have candidly communicated to marketers that they can no longer maintain this, suggesting they have been subsidizing the product all along.”

He further added, “Naturally, petrol prices at the pumps are likely to escalate in the upcoming weeks, as we are still not receiving sufficient supplies. Therefore, immediate and significant action is required to address this issue.”

Recently, private depots have been selling petrol at prices between N920 and N950 per litre, which contradicts the Nigerian Upstream and Downstream Petroleum Regulatory Authority's stance that depots should adhere to a specified price for PMS.

George Ene-Ita, the spokesperson for the NMDPRA, stated last week that the price reports received from depot officials do not align with the expected figures.

"Our depot personnel report a different price because we require them to publish daily prices, and it is not N850 per litre. Our field agents at the depots provide us with a different amount," he explained.

When informed that some independent filling stations in Lagos and other states were charging as much as N900 and N1,000 per litre, the NMDPRA representative indicated that such establishments would face consequences if caught.

"If we identify these outlets, our response is to attempt to shut them down, as NNPC is responsible for importing the product and informs us of their ex-depot prices for off-takers.

We collaborate to determine the margins, and there is no justification for such high prices," Ene-Ita concluded.

The spokesperson for the NMDPRA emphasized that the agency is unable to justify the elevated petrol prices set by independent marketers. "Once we identify these outlets, we will proceed to close them down. The NNPC provides us with their pricing, and there is no justification for such high pump prices. We do not anticipate prices exceeding N650 per litre," he cautioned. Nevertheless, investigations conducted by our reporters on Monday revealed that numerous filling stations operated by independent marketers were selling petrol at nearly N1,000 per litre. In Kaduna, some stations were charging as much as N1,300 per litre.

Hammed Fashola, the National Vice Chairman of IPMAN, expressed his disagreement with the NMDPRA, asserting that the regulator lacks sincerity. He remarked, "I came across reports indicating that the NMDPRA claimed no depot is selling at inflated prices. I find it hard to believe such statements from the NMDPRA, as they are not being truthful.

The NMDPRA is aware of the situation since their officials are present at all depots." Fashola highlighted that private depots charge higher rates, and when transportation and other costs are factored in, the prices at filling stations increase.

He explained that the price differences between major and independent marketers stem from IPMAN members not sourcing their products directly from NNPC, the exclusive fuel importer. He noted that supply shortages persist, leading to increased prices due to heightened demand.

Fashola pointed out that many private depots currently sell petrol for N920/litre, with others charging N950/litre, which accounts for the higher prices at independent marketers' stations, who operate approximately 80 percent of Nigeria's filling stations.

He urged the government to either reinstate the fuel subsidy or eliminate it entirely, rather than pursuing a partial deregulation approach.

"The Federal Government and NNPC should resolve this matter decisively. If they intend to deregulate, it should be done comprehensively. The disparity is evident, with NNPC retail prices at N580 in Lagos, while independent marketers charge between N800 and N900.

This gap is detrimental to our business and hampers our progress," Fashola concluded. He also mentioned that depot owners are facing numerous challenges.

The issue at hand is that only NNPC has the capability to supply this product due to foreign exchange constraints. They hold a monopoly on sales. A couple of independent marketers attempted to import the product in the past, but were unsuccessful.

"If you speak with some of the depot owners, they will share the challenges they face as well. When NNPC delivers the product, it does not drop it off at their depots.

They are required to hire daughter vessels and incur various charges in foreign currency. Therefore, it is difficult to place too much blame on them. This is the reality, and depot owners also face their own set of expenses," he explained.

A large group of protesters gathered, holding signs demanding the immediate removal of NNPC's CEO, Kyari.

This demonstration followed NNPC's acknowledgment that its significant debts to suppliers were jeopardizing a reliable fuel supply. The crowd chanted songs of solidarity and showcased various placards with messages such as ‘We are tired of fuel scarcity and excuses for refinery failures,’ ‘No direction under Kyari,’ and ‘We demand accountability from NNPCL.’

The protesters expressed their frustration, asserting that Kyari's leadership has been characterized by a poor performance record that raises more questions than it answers.

Speaking to reporters at Unity Fountain after the rally in Abuja, Aminu Abbas, the Convener of the Coalition of Concerned Civil Society Organisations, questioned why Nigeria, a nation rich in oil, continues to experience severe petrol shortages. He stated, “To President Ahmed Bola Tinubu and all those in power, we urge you to take action now. Demonstrate your commitment to the people rather than to those profiting from our suffering. Mr. Kyari must be removed, and the NNPCL needs reform to prioritize the interests of all Nigerians. We will not be silenced.

“The fuel scarcity we face today is not merely an inconvenience; it is a deliberate continuation of hardship. Under Mr. Kyari’s leadership, conditions have deteriorated significantly, with no resolution in sight. What measures has he taken to address this crisis? It is evident that he appears focused on preserving a status quo that benefits only a privileged few while the general populace endures hardship.

“Why must we, the citizens, suffer through endless lines, soaring prices, and the daily uncertainty of fueling our vehicles or powering our homes? The root of this issue lies in the gross incompetence and mismanagement that have come to define Mr. Kyari’s administration.”

Human rights attorney Femi Falana also expressed concerns regarding the escalating cost of living, noting that the arbitrary increase in petrol prices and the resulting scarcity have led to a decrease in the number of vehicles on Nigerian roads.

Human rights attorney Femi Falana expressed his concerns regarding the escalating cost of living, highlighting that the arbitrary increase in petrol prices and the resulting scarcity have led to a decrease in the number of vehicles on Nigerian roads.

Speaking on Channels Television’s Politics Today on Sunday, Falana emphasized the urgent need to uncover the "monumental fraud" surrounding fuel importation in Nigeria. He remarked, “In the past year and a half, how many individuals have purchased a vehicle, even a used one, in Nigeria?

The reality is that the number of vehicles on the road has diminished. We were informed that during prosperous times, the NNPCL was subsidizing 68 million liters of fuel daily.

Now, amidst widespread scarcity and poverty, with no new vehicles on the roads, we continue to pay for 68 million liters of fuel.

Prior to this administration, the Comptroller General of Customs challenged the NNPCL during a Senate hearing to account for the volume of fuel allegedly smuggled out of the country.”

Falana further noted that recent reports indicate the NNPC is not fully transparent about the smuggling of crude oil from Nigeria.

He argued that smugglers would require 2,000 petrol tankers to transport the quantity of fuel the corporation claims is being stolen regularly.

“Given that we control the borders, approximately 2,000 tankers would be necessary to remove the amount of fuel the NNPCL alleges is being smuggled.

So, what has changed? This is the moment to reveal the significant fraud that has plagued fuel importation,” he asserted.