630/Litre : Lagos Petrol Stations Shut Down Amid Rise in Depot
In the wake of President Bola Tinubu’s announcement that there will be no more increases in petrol prices across Nigeria, petrol marketers are seeking subsidies to mitigate the impact of escalating import costs.
This development arises due to the marketers’ assertion that depot prices have surpassed the prevailing pump price of the product. A report from Punch suggests that the Nigerian government might be discreetly disbursing subsidies to marketers in order to prevent further price escalations. Presently, the commodity is trading between N568 and N617 in certain regions of Nigeria due to fluctuations in foreign exchange rates, as the product is entirely reliant on imports.
Sources reveal that the ex-depot price of petrol was recorded at N580 per litre as of Thursday, August 17, 2023. Factoring in transportation costs to petrol stations and the profit margins of marketers, the expected retail price should range between N620 and N630 per litre.
Meanwhile, amid speculation of potential price hikes, a number of petrol stations in the Lagos metropolis have chosen to close. An investigation by Legit.ng unveiled this trend in areas such as Ikeja, Ogba, and Maryland in Lagos.
At petrol stations in these locales, either doors were shuttered or attendants were idle without serving customers. In the vicinity of Maryland in Lagos, petrol attendants conveyed that they were instructed to halt petrol dispensing.
When questioned about product availability, the staff referred our reporter to a manager named Biyi Ojo, who affirmed that their stock hadn’t been depleted. Upon further inquiry, Ojo clarified that their management had issued directives to halt petrol dispensing.
“We possess an adequate supply of the product, but we’re under strict directives to cease dispensing until further notice. Although we’re uncertain about the potential for price increases or scarcity, this is the current mandate we’re following.”
In the vicinity of the visited areas, other petrol stations either exhibited inactivity or had staff members lingering on the premises.