Lagos, Aug. 15, 2023:Long queues of vehicles has resurfaced in Lagos as some filling stations shut down operations in anticipation of increase in pump pric.
Some filling stations along Ikorodu Road, Maryland, Gbagada, Bariga, Ketu and Yaba witnessed long queues as many other stations were locked.
Some marketers, who preferred anonymity, said the scarcity of petrol and challenges faced by licensed petroleum product marketers were due to foreign exchange volatility have led to these issues.
According to them, marketers are facing difficulties in closing business deals with suppliers and banks which has resulted in some stations being shut down and products being hoarded.
They also said that the prevailing forex rate and the reluctance of marketers to sell at the current price contributed to the situation; long queues.
They noted that there were indications of another round of nationwide petrol scarcity, which could lead to an increase in pump prices to around N750 per litre to N800 per litre should the dollar continue to trade from N910 to N950 at the parallel market.
They also hinted that dealers seeking to import PMS were asked to put the plans on hold, due to the scarcity of foreign exchange to import the commodity.
They said that the warning came barely one week after the local currency crossed the N900 per dollar ceiling, with the Naira selling at over 945 per dollar at the parallel market on Aug. 11.
“The CBN Importers and Exporters official window for foreign exchange, which boast of a lower exchange rate of about N740 per litre, had remained illiquid and unable to provide the 25 million dollars to 30 million dollars required for the importation of PMS by dealers.
“This, had led to the suspension petrol importation by dealers who were initially eager to import the commodity.
“The only marketer who imported the commodity recently, was now finding it tough to recoup its investment due to the depreciation of the Naira.
“Petrol price hike was imminent unless the local currency appreciates in the coming weeks,” another marketer explained.
However, the Independent Petroleum Marketers Association of Nigeria (IPMAN), Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), and Major Oil Marketers Association of Nigeria (MOMAN) are set to meet on Tuesday to discuss the issue.
