NNPCL says there is sufficient petrol stock for 30 days, warns against panic buying

The Nigerian National Petroleum Company Limited (NNPCL) has warned the public against panic buying of the premium motor spirit (PMS), also known as petrol, stating that it has about 1.5 billion litres of the product which would be sufficient for 30 days’ supply.

This was disclosed in a statement by the company, noting that queues across fuel stations in the country have reduced significantly over the measures it has taken to address supply scarcity.

As the nationwide supply and distribution of Premium Motor Spirit (PMS), also known as petrol, continue to improve, the Nigerian National Petroleum Company (NNPC) Limited has once again called on motorists to shun panic buying of the product.”

“The Company wishes to state that at the moment, it has over 1.5 billion litres stock of PMS, which is equivalent to over 30 days sufficiency.”

The company further noted that it is collaborating with relevant agencies, the Nigerian Mainstream and Downstream Petroleum Regulatory Authority (NMDPRA), labour unions and security agents to address uncompetitive practices and hoarding by marketers and distributors.

“The NNPC Ltd. is also collaborating with relevant downstream agencies, such as the Nigeran Midstream & Downstream Petroleum Regulatory Authority (NMDPRA), labour unions in the sector and security operatives, to address hoarding and other unwholesome practices.”

Backstory

In the past week, Nigerians have had to queue for petrol due to shortages in the supply of the product, resulting in a significant increase in its pump price across the country.

Although the NNPCL stated that the scarcity would be over in three days, blaming the shortages on logistical and distribution issues. However, the scarcity has lingered on and resulted in a significant increase in transportation costs for members of the public.

What you should know

An investigation by Nairametrics revealed that petrol sold for over N700 per litre in Abuja, Lagos and Ogun states. In some places, the price of petrol was as high as N1500 per litre in the “black market” last week.

Furthermore, Nairametrics also reported significant increases in transportation costs following the scarcity and resultant hike in petrol prices. In some cases, the increase in transport fares was as high as 100% and on average there was a 50% increase in transport costs following the scarcity of petrol in Lagos.

Also, the scarcity in transport costs also brought to the fore the discussion on resumption in payment of subsidy for petrol after the removal in 2023. The CEO of Rain Oil, Mr Gabriel Ogbechie, had earlier stated that the Federal Government was spending around N600 billion monthly on fuel subsidy, mainly due to the significant depreciation of the naira.