An independent oil marketer, who preferred anonymity, said: “It was almost inevitable for the pump price to remain the same, as this is one of the outcomes of a fully deregulated market.
“The NNPCL remains the main importer, with private importation remaining limited. This situation is worsened by Nigeria’s declining crude oil output, which impacts the country’s capacity to import refined products,” the marketer said.
Tunji Oyebanji, the chief executive officer of 11 Plc (formerly Mobil Nigeria), said selling below the landing cost, whether from import or local refineries, is not sustainable.
“If they sell at an economic price, perhaps others can import, supply will improve, and the financial strain will not be on them alone. It’s either that or these supply disruptions will continue indefinitely. I am baffled that they have not been upfront about this since instead of denials,” Oyebanji said in a note.
Further findings showed the landing cost of N1,203 does not include Nigerian Ports Authority charges, vessel charges, the Nigerian Maritime Administration and Safety Agency charges, and other distribution costs.
The Managing Director of a leading transport company with several offices across the country who wouldn’t like his name on print told Vanguard that fuel scarcity has been one of the major problems of transporters in the country.
He wondered: “Has there been any time that fuel is available in the country? We have resolved that whatever price we buy, we shall review the fares to break even. We won’t be working without making a profit”.
He lamented that the local governments, too, are not helping matters with all manners of levies on Transport Company.
He said: “In Enugu, Abia, Rivers, Cross River, and many others collect not less N5,000 each from every boss daily which they tag daily ticket. Also, security agencies extort drivers on the highways, making the business very difficult for transporters.
He also noted that drivers are forced to cough out huge amounts for failure to provide the already suspended proof of ownership receipt by the government.
All these, he said have contributed to the fare hike across the country. A journey from Lagos to the Eastern part of the country costs as much as N30,000 as against N15,000 a few years ago.
