NNPC warns against panic buying as long queues resurface in Lagos

Long queues were witnessed in some filling stations around Lagos Mainland and Ikeja axis of Lagos State after the Petroleum Products Pricing Regulatory Agency announced an increase in the Ex-depot price of Premium Motor Spirit on Friday.

Ex-deport price is the price at which oil marketers buy products at the depots, the price is what determines the price at which petrol stations will sell to motorists.

The Petroleum Products Pricing Regulatory Agency had revealed in a new monthly template that the price of Premium Motor Spirit, also known as petrol, has reached N212.6 per litre.

According to the template which the PPPRA released midnight, petrol is expected to sell at a lower retail price of N209.61 and at an upper retail price of N212.61. Nigerian marketers usually use the upper band for pump price.

But the agency later deleted the post and clarified that it is not within its jurisdiction to increase fuel price in the country.

However, at the Nigerian National Petroleum Corporations Filling Station at Omole Junction, near Berger, many vehicles were seen queuing for fuel.

Though the filling station didn’t increase the petrol price, some of the motorists expressed fear that they could be an increase after the announcement.

Also, at Nationwide Filling Station along Fagba junction, many vehicles and motorcyclists were in a long queue, alongside residents that wanted to buy fuel in jerricans.

A passer-by, Akanbi Adeyemi, said the long queue at Palmgrove bus stop caused traffic.

“I passed through Onipan, Palmgrove and everywhere was almost blocked. Many people wanted to buy fuel and the commercial vehicles at the bus stop did not help matters,” he added.

Meanwhile, the Nigerian National Petroleum Corporations says it has not increased the ex-depot price of petrol.

The Group General Manager, Group Public Affairs Division of the Corporation, Dr Kennie Obateru, on Friday, urged Nigerians and motorists not to engage in panic buying of the products.

“There is no need for panicking and I can tell you from our own point of view that we will not increase the pump price of petrol and we are still standing by that March 1 decision.

“We have a sufficient product in the country and there is really no need for the public to panic. Like I have stated, the ex-depot price for the NNPC is still at it is, it has not increased and it will not increase in this month of March,” he said.

Giving a breakdown of the cost elements of the commodity on its website, the PPPRA put the Expected Ex-Coastal price at N175.73 per litre, comprising Average gasoline price (FOB Rotterdam barge), and Average freight rate of N169.22 and N6.51 per litre respectively.

It also put the Expected Landing Cost of the commodity at N189.61 per litre, comprising the addition to the ex-coastal price, of average lightering expenses, Nigeria Port Authority Charges, NIMASA charges, jetty throughput charges, storage charge and average financing cost of N4.81, N2.49, N0.23, N1.61, N2.58 and N2.17 per litre respectively.

It further added the wholesalers’ margin of N4.03 per litre; administrative charge of N1.23 per litre; transporters’ allowance of N3.89 per litre; bridging fund of N7.51 per litre and Marine Transport Average of N0.15.

It noted that various margins brought the expected ex-depot price, that is the price at which the commodity is sold to petrol stations, to N206.42 per litre.

The PPPRA further stated that the inclusion of retailers’ margin of about N6.19 per litre, would bring the pump price of the commodity, the price at which it is sold to motorists, to N212.61 per litre. (The PUNCH)