Nigerian National Petroleum Company Instructs Marketers to Load Petroleum Products Amid Pipeline Repairs
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has refuted claims of petroleum product scarcity, stating that the Nigerian National Petroleum Company Limited (NNPCL) has directed marketers to commence loading at the Pinnacle Depot in Ibeju Lekki, Lagos. This directive comes as repairs are being carried out on vandalized pipelines that supply products to satellite depots.
IPMAN’s President, Chinedu Okoronkwo, explained that NNPCL has reassured marketers of an adequate supply of petroleum products and is actively addressing the issue of pipeline vandalism. He expressed confidence that the pipeline leakage problem would be resolved soon, and in the interim, NNPCL has instructed marketers to load products at the Pinnacle Depot.
According to Okoronkwo, some IPMAN members have not yet initiated petrol imports due to exchange rate fluctuations. Consequently, they are currently relying on NNPC for petrol supplies but intend to resume importation in the near future.
Investigations have revealed that certain petrol stations in Lagos and Ogun states have slightly adjusted their pump prices, with some selling petrol at prices ranging from N570 per litre to N580 per litre.
Further analysis indicates that the landing cost of petrol has been on the rise since August due to several factors. These include exchange rate volatility, which has made importing petrol less profitable, and the deterioration of the exchange rate. Additionally, the cost of fuel imports has increased in response to the recent surge in global crude oil prices.
A detailed transactional analysis conducted by a major operator shows that marketers are incurring a total direct cost of N604.14 per litre of petrol. This cost breakdown includes product cost per litre, freight charges (Lome-Lagos), port charges, NMDPRA levy, storage cost, marine insurance cost, fendering cost, and various other costs, including finance charges. The analysis reveals that the landing cost for 28,000 metric tons of imported petrol exceeds $25 million, capable of generating over N22 billion in sales revenue but resulting in a loss of more than N1.6 billion.