Independent petrol marketers in Nigeria have cautioned that motorists may soon face an era of irregular or “epileptic” petrol supply. The National Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Mr. Chukwudi Akadike, revealed that mounting bank debts and rising import costs are straining operations across the sector. With fuel prices already climbing, securing enough working capital to maintain stock levels has become increasingly difficult, forcing some operators to ration supplies.
Marketers explained that higher pump prices are squeezing margins while simultaneously increasing the naira value required to purchase each truckload of petrol. “The purchasing power is high. Now, it takes so much Naira to buy 45,000 or 40,000 litres,” Akadike said. Many operators are combining resources just to keep their stations supplied, signaling a sharp change in how Nigeria’s downstream petroleum market is operating.
The rising cost of petrol has also slowed consumption, as consumers adjust their behaviour to higher prices. Ibrahim Gambo, another oil marketer, noted that commercial transport operators and regular motorists are conserving fuel, reducing trips, and in some cases switching to alternatives like CNG. This softening demand comes after the festive season, when fuel consumption is usually at its peak.
Complicating matters, global crude oil prices have risen to around $70 per barrel amid geopolitical tensions and supply concerns, increasing the cost of imported petrol. Analysts warn that without careful management, pump prices could hit N1,000 per litre. Dangote Petroleum Refinery recently raised its gantry price to N799 per litre, while NNPC adjusted pump prices to N835–N839 per litre in major cities, reflecting the ongoing impact of global market dynamics on local consumers.
Despite some recent stability in the naira, marketers stress that foreign exchange alone cannot ease fuel prices. Logistics, insurance, port charges, interest rates, and global crude volatility continue to put pressure on the sector. While higher crude prices may ultimately benefit government revenue and strengthen reserves, Nigerians are likely to feel the pinch at the pump in the weeks ahead, highlighting the delicate balance in the country’s energy market.
source: The sun