November 1 came and went yesterday without the official take-off of the much-expected deregulation of fuel prices, but petroleum marketers in various parts of the country were selling Premium Motor Spirit (PMS) otherwise known as petrol at different rates. The prices ranged from N75 to N110, while only a few petrol stations in Abuja still sold fuel at the official price of N65 per litre.
At the few filling stations that agreed to open for business in Kano, Zaria, and Kaduna, a litre of petrol was sold at between N90 and N120 per litre. Even in the same cities, the price per litre of petrol varied from one filling station to another, which were mostly independent marketers, while in the black markets a litre was sold for as much as N150.
Our reporter in Maiduguri said the few filling stations that sold the commodity yesterday did so at N75 per litre, while our reporter in Sokoto said no major filling station was open, but black marketers sold a litre of petrol for between N70 and N100. In Dutse, our reporter said only the NNPC’s Mega Station sold fuel for a few hours, while it was sold at the black market for N75 to N80.
From Gusau, our reporter said petrol was sold for N75 to N80 within the town but it went for N85 in the city outskirts, while in Lafia, our reporter said no major marketer sold fuel yesterday, but independent marketers sold it for between N85 and N90 a litre.
And in Kaduna, our reporter quoted several filling station managers as saying there has been no official increase in fuel prices and no take-off of the deregulation regime. However, fuel was being sold by the independent marketers for between N75 and N80 at various stations. And in Lagos, our reporters said petrol was being sold for up to N100 per litre in some filling stations, though some sold for N70 per litre. In most of those cities, long queues persisted at the filling stations.
However, the management of the Nigerian National Petroleum Corporation, NNPC, last night assured Nigerians of adequate supply of petroleum products across the country. Its Group General Manager, Public Affairs Dr Levi Ajuonuma said NNPC has a stock of petroleum products that could serve the country for 42 days.
“The petroleum products we have in our storage facilities right now can serve the entire country for 42 days if in that period we do not receive further supplies. But the good thing is that we are receiving supplies every day, and I can assure you that there will be enough fuel from now through the period of the Muslim and Christian festivities up to the New Year,” Ajuonuma said.
He called on members of the public to desist from panic buying as there was no reason whatsoever to entertain fears about possible fuel scarcity, adding that “the PMS stock in the country can last for 42 days, same for other products”. Ajuonuma urged marketers to desist from products hoarding and the practice of dispensing fuel with only one nozzle at their fuel stations, explaining that any marketer found doing so would have their stations closed down by the Department of Petroleum Resources, DPR.
The controversy that led to the recent deregulation began when an NNPC top official, Aminu Baba Kusa, announced that the government would begin the deregulation of the downstream sector of the country’s oil industry Nov 1, but the government later denounced his statement.
Sources in the oil industry told Daily Trust yesterday that the NNPC which is now the sole importer of the petroleum products has been facing difficulties in meeting the nation’s fuel demand. Marketers have not been importing fuel since the controversy of the deregulation date began.
Secretary of the Major Oil Marketers Association of Nigeria (MOMAN) Mr. Moses Olawore confirmed that his members are not importing at the moment but told our reporter that beginning from today (Monday November 2, 2009) the Petroleum Products Pricing Regulatory Agency has promised to re-issue import licenses to his members.
On deregulation, Olawore said government has not briefed them yet and there were no indications that it has commenced the new policy.
He said as at yesterday, there was no information whatsoever from government about the deregulation but the only news at hand was that marketers will be allowed to import more petroleum products again.
At the same time, he said the Minister of Finance Mansur Muktar has assured them that their outstanding balance of the scrapped- Petroleum Support Fund will be settled within this week or latest early next week.