PMS price hits all time high, 710 per litre in Lagos

The escalation of the depot price of Premium Motor Spirit (PMS), commonly referred to as petrol, to N710 per liter in Lagos has elicited apprehension among independent petroleum marketers.

This surge has subsequently caused a ripple effect on the pump prices at retail outlets managed by these marketers, with figures now ranging between N730 and N750 per liter.

This price hike has resulted in extended queues at select stations operated by major marketers and the Nigerian National Petroleum Company Limited (NNPCL), where the cost stands at a comparatively lower N610 and N568 per liter, respectively.

A comprehensive inspection of private depots situated in the Satellite and Apapa regions of Lagos has revealed a spectrum of pricing, with rates fluctuating between N701 and N735 per liter.

Noteworthy among these depots are Bovas depot, which retails petrol to independent marketers at N762 per liter, and MRS depot, where the price is set at N735 per liter.

This recent development underscores the urgent need for stakeholders in the petroleum industry to closely monitor and address the escalating cost of PMS, as it directly impacts both marketers and consumers alike.

Rainoil depot had the cheapest rate of N705 per litre, followed by Emadeb depot with the same price.

Eterna Oil and Sahara, also called Asharami depot, both sold at N701 per litre.

One of the independent marketers who spoke on condition of anonymity stated “most major marketers own tank farms in Lagos and they buy directly from NNPC. Scarcity has eased out a bit because NNPC supply mainly to major marketers but we the independent marketers are struggling as we depend on these major marketers for products.

“The major marketers buy at NNPCL rate of N548 to N550 per litre and they sell to us at N705, the cheapest is N701 per litre. These major marketers have filling stations in Lagos and other states but in Lagos they sell in their various stations at N610 to N620 per liter.

“IPMAN stations in Lagos are struggling as we are unable to sell due to the price difference making the market highly competitive. Our people outside Lagos are the ones selling as they benefit from the high price that it’s being sold over there.

He noted “when we buy from these major marketers at N705 per liter, NUPENG will charge us per the number of liters we purchase and then we add transportation cost of N15 to our filling stations, the price at the pump will be sold at N740 to N750 per liter”

“Some of our members have started direct purchase through NNPCL, but the allocation from them is very low and cannot sustain all our members, therefore we have to go through private deports and buy from them to augment our various stations. For our members that buy from the private deports, automatically the price will change at their stations as they sell at a higher rate compared to major marketers”.