Amid the fall in crude oil prices worldwide, independent marketers have expressed mixed feelings about removing petrol from depots.
Petroleum product marketers have expressed fears that the volatility in petrol prices may lead to unstable PMS supply in filling stations.
The marketers said that despite the absence of fuel scarcity due to increased local refining, filling station operators are reluctant to lift products from depots.
The national publicity secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, stressed that marketers lose billions of naira each time petroleum product prices crash.
He disclosed that the mega Dangote Refinery began petroleum product refining in early 2024, leading to a crash in diesel prices and forcing marketers to sell below their purchase cost, thereby running into huge losses and debts.
Meanwhile, due to the deregulation of the downstream petroleum sector, the 650,000 bpd-capacity refinery and the Nigerian National Petroleum Company Limited (NNPC) have changed PMS prices multiple times between September 2024 and January 2025, affecting price stability and purchase costs.
The IPMAN spokesman said running filling stations has become risky due to the price scare.
Ukadike said there is an ample supply of petrol at the Lekki-based refinery and the NNPC depots. However, due to price changes, many filling stations are sceptical about buying the product.
Punch reports that Ukadike disagreed with the notion of making more money during an upward price adjustment, saying the only reason for the review was to meet the new market price and not for profit-taking.
According to him, marketers add more to continue to purchase products but not to make a profit as prices surge. He said that marketers are scared stiff of lifting fuel to avoid losses, after securing bank loans.
The IPMAN scribe said small players in the industry are already closing shop, allowing the big players to have a field day.
