From Uche Usim, Abuja
The Nigerian National Petroleum Company Limited (NNPC Limited), on Friday, allayed motorists’ fears of a possible petrol price hike.
The uncertainty has forced consumers to engage in panic buying to hedge against an anticipated price increase, following reports that the landing cost of petrol had shot up.
The national oil company on its X handle asked the public to totally disregard wide speculations suggesting that a petrol price increase was in the offing.
It said: “Dear esteemed customers, we at NNPC Retail value your patronage, and we do not have the intention to increase our PMS pump prices as widely speculated. Please buy the best quality products at the most affordable prices at our NNPC Retail Stations nationwide.”
NNPC Limited’s comments were in reaction to reports that the landing cost of petrol has remarkably spiked to N720 per litre from the previous price of N651 per litre in August, a development that prepares the ground for a pump price increase.
Already, many oil marketers and depot owners lament that they cannot restock due to a plethora of challenges ranging from foreign exchange scarcity and high diesel cost; to increase in crude oil prices at the international markets, bad roads and security concerns.
The development has depleted many petrol depots, forcing the owners to ration the product to keep the economy running, though queues are already returning in some parts of the country.
Oil marketers on the platform of Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) told Saturday Sun that the operating environment has become too toxic to support efficient procurement and distribution of petroleum products, unless the federal government intervenes.
The union said there were mass shutdowns of filling stations and tankers in the last couple of days as products dealers succumb to operational challenges asphyxiating them.
According to the national president of NOGASA, Mr Benneth Korie, if nothing is done to stem the tide and improve the downstream sector, thousands of jobs would be lost as it was sure that marketers would close shop in no distant time.
“Banks are not willing to guarantee funds to stakeholders as a result of the difficulty, instability and galloping rates of foreign exchange.
“Many depots are presently dried up or out of stock, and this is no gainsaying as it is evidently verifiable.
“Government must, therefore, urgently come to the aid of the industry as quickly as possible to save it from an impending collapse, which will in turn result in a more devastating blow to the economy at large”, Korie said.