A Review of the Nigerian Energy Industry

Despite NNPC intervention, marketers hike ex-depot price of petrol by 42%

19 May 2015, Lagos – In spite of the claim by oil marketers that the petrol in the domestic market at the moment was imported by only the Nigerian National Petroleum Corporation (NNPC) as they could no longer import as a result of huge subsidy claims owed by the federal government, these marketers have hiked the ex-depot of products in their depots by 42 per cent, THISDAY’s market survey at the weekend has revealed.

The survey showed that some marketers were selling at the ex-depot price of N110 per litre, representing an increase of 42 per cent, compared to the official ex-depot price of N77 recommended by the Petroleum Products Pricing Regulatory Agency (PPPRA).

It was not clear where the marketers received the products since it is only the NNPC that is known to import petrol, thus the scarcity situation across the country.
While some sources within the marketers told THISDAY that they bought from foreign traders that brought in vessels at the high seas, others said they bought NNPC products from third party, thus making the cost exorbitant.

The high cost of the products at the depots has made the pump price to remain high, with some filling stations selling at N120 per litre at the weekend.
However, NNPC’s ex-depot price in all the designated private depots dispensing the corporation’s imported products was N87 per litre, which is also government’s approved pump price at filling stations.

With NNPC selling at N87 at the depots, THISDAY could not ascertain how their dealers were able to sell at the same price at the filling stations.
But THISDAY gathered that independent marketers, for example, MRS was selling to bulk buyers at ex-depot price of N109 per litre and N110 per litre to their dealers.

EMMADEP Depot, which was built recently in Satellite area of Lagos was selling at ex-depot price of N105 per to dealers; Heyden Petroleum was selling at N102 per litre at the depot, while Integrated Oil and Gas at Ibafon area was selling at N100 per litre.
Other depots and tank farms and their ex-depot prices increased included Techno Oil, N101; Sahara Group, N98; Obat Oil, N98; Index Petroleum, N98; Swift Oil, N98; Folawiyo, N95; Ascon Oil, N95.50; and Dee Jones, N94 per litre.

However, major marketers – Forte Oil, Conoil, Mobil, Oando, MRS (formerly Chevron), Total, and NIPCO, which sourced product direct from the NNPC, were selling at ex-depot price of N87 per litre.
Independent marketers such as Acorn; AZ; Capital Oil; Euroafric; Fatgbems; Global Fleet; Hensmor and Honeywell did not have product at the weekend.
Other marketers with dry depots at the weekend include Ibakem; Ibeto; Lister; Rahamania; Eterna Oil; and Gulf Treasure.
Gulf Treasure, Bovas, Heyden, MRS, and Integrated Oil, were also dispensing Dual Purpose Kerosene (DPK).


– This Day

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