Depots deserted as petrol landing cost hits N720/litre

Oil marketers have warned that a widespread petrol scarcity looms in Nigeria as many petroleum product depots are currently deserted due to a lack of supplies caused by currency volatility.

TrackNews Media reports that the landing cost of Premium Motor Spirit, also known as petrol, has risen to N720 per litre, up from N651 per litre in August.

This has made it difficult for depot owners to secure bank loans to fund their businesses, and many depots are now either dry or out of stock.

Filling stations are also shutting down in large numbers on a daily basis, as dealers find it difficult to secure funds to procure products for their retail outlets.

The National President of the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA), Benneth Korie, has called on the government to come to the industry’s help as soon as possible to save it from an oncoming collapse.

He said: “Both the independent and major marketers are so terribly affected. As of today, filling stations are shutting down in great numbers on a daily basis and dealers are going out of business, with many more on the verge of bankruptcy because of their inability to secure funds to facilitate orders for their stations.

“The high dollar exchange rate against the naira rate was killing its businesses, requesting that foreign exchange for importing fuel should be pegged at N600 for the next three months.”

NOGASA has expressed worry about the mounting issues of petroleum product procurement and distribution, particularly the hardships caused by rises in petrol and diesel pump prices across the country.