Marketers of petroleum products have voiced concerns that an epileptic Premium Motor Spirit (PMS) supply in filling stations could result from the volatility of petrol pricing.
The marketers pointed out that filling station owners are now reluctant to remove the items from depots, even if there may not be a fuel shortage because of the local refining capability.
Chinedu Ukadike, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, underlined to reporters that every time the prices of petroleum goods like PMS and diesel are lowered, merchants lose billions of naira.
He recalled how the Dangote refinery caused the price of diesel to plummet when it first joined the market in early 2024, forcing traders to sell below their cost of acquisition and incurring enormous debt.
Between September 2024 and January 2025, the Dangote refinery and the NNPCL altered PMS prices several times, impacting price stability and procurement costs when the Nigerian government fully deregulated the downstream petroleum sector.
Ukadike revealed that what he referred to as the “price scare” had made operating a petrol station riskier.
He claims that although there is an adequate supply of petrol at the Nigerian National Petroleum Company Limited’s depots and the Dangote refinery, many filling stations are afraid to purchase it because of the abrupt price adjustment.
“Everyone is attempting to exercise extreme caution. It’s not that the product doesn’t exist. The product is available for purchase. However, everyone is quite cautious about the price worry. There are occasions when people lose billions of naira when the price drops. Thus, everyone is exercising caution,” Ukadike clarified.
Ukadike objected when he was reminded that a price increase benefits marketers since they quickly adapt to the new price, unlike when a price decrease occurs.
He asserts that the price increase is solely necessary to match the new market price and not to generate surplus profits.
“Remember that the marketers add more money, which is not profit when the price increases.”
“To be able to keep buying the merchandise, they add money. I want you to realise that it’s not a profit because you won’t be able to buy anything else if the price increases and you sell at your previous price. He explained, “You won’t be able to back up.”
According to the IPMAN representative, marketers who have obtained bank loans are afraid to lift fuels to prevent collateral losses.
“Due to the pricing concern, marketers are afraid to raise fuel prices. Collateral losses are not something they want to experience.
“Keep in mind that marketers were losing money when the Dangote refinery arrived because it was lowering prices. Has someone informed marketers that they will reimburse them for the money they lost or advised them not to sell again? He emphasised, “No one said so, and no one will say so.”
