FG IS NOT SINCERE WITH NIGERIANS OVER FUEL PUMP PRICE . . . the depots are hoarding the products because of uncertainty . . . Independent Marketer

By Eseoghene Akporhonor.

Between the year 2015 to 2021, Nigerians have been subjected to the trauma of having to cope with the constant increament of fuel pump price. 

The journey from 87Naira, then, to 175 Naira in just about six years is not without its attendant stress as citizens go through hell but trust Nigerians resilience and adaptive tendencies. 

According to a Benin based independent petroleum marketer Elvis Onaiwu who said in a chat with SPARKNEWSNAIJA crew said

"as we all know, we trade in dollars, we have crude oil but none of our refineries are working.

You'd have to take crude oil, transport it out of the courtry for a finishing refined product to become PMS, DIESEL, KEROSENE."

"In the process of doing this,  as we trade in dollars  and considering the fact that dollar has skyrocketed, So of course it must affect the pricing of such commodities that is dependent on foreign exchange."

ONAIWU who has been in the business for decades said  "In my own opinion there is insincerity on the part of the federal government. The FG say they are not subsidising the petroleum process anymore but if you aren't subsiding a product,  you are saying  you have   deregulated it but  you are still interested in  controlling  the price? That's why I said on their part they are not being sincere" .

The Benin based independent Marketer however reasoned that "You can't be saying through the back door that you  deregulated the  product, because as we all know , in the last budget they didn't factor subsidy of PMS.  So now when you don't have that, It means you deregulated the product and when you deregulate a product, you don't have the power to control its pricing. So let the market forces control the price. It may go up and it may come down, until it stabilizes."

He querried  the restriction of license imposed on  independent marketers from  importing PMS.

"Before now,  the past administration  subsidised dollar to independent marketers to be able to import and sell.

But now NNPC is the only sole importer of PMS and that's alot to deal with. I think this is all what's necessitating the instability in the pricing of the product."

"Imagine Right now NNPC is telling us that the PMS landing price is above  one hundred and eighty naira per litre, we've heard that for sometime. it means the price will definitely increase.

If that's what they're saying it means we're selling below, which means the price will definitely increase."

"The FG gives those depots in catchment areas, for example 

we have up to 7-10 depots around here, warri, oghara and all that. If these  depots keep getting constant supply based on their demands, there will be competitive prices.

"We the marketers have seen  situation whereby the FG ask marketers to sell at 130 and they still sell at 129, because they already have a vessel they have not discharged. Because when you have a product and you have a vessel still standing on the sea, you will  have to quickly pull whatever you have to be able to discharge.

"Because we keep hearing we're not going to increase in the month of March, can you situate the difference between that and we are not increasing the price now and we're not increasing in the month of March."? 

"The point here is, if there is much product in the market, It will be easily accessible, But right now the depots are hoarding the products because of uncertainty.

Because now when you finish selling what you have, you are not sure if NNPC is going to supply you, which leads to hoarding of products."

"None of them are even selling at actual price, because what they're supposed to be selling is 148/149 at the depot level. While we the independent marketers buy,  logistic is about  four  naira then we add our profit.  But right now we are really suffering it because the product isn't available and the price has been jacked up and we are using more capital to do the business, while making less."

Onaiwu however recommends a way out  "the lasting solution would be for our refineries to be working. If our refineries are working we will be good. 

Because we have crude oil, we transport it out to refine, then transport it back, Which doesn't make any sense."

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