Fuel scarcity: 20 oil companies become major marketers after NNPCL approval

According to a report by The Punch, the upgrade has increased the number of major marketers of petroleum products currently operating in the downstream sector from seven to 27.

This upgrade is the first to be carried out in 25 years and until the time the action was taken, there were just seven major oil marketers in Nigeria which include TotalEnergies, OVH Energy (Oando), MRS, Conoil Plc, Ardova Plc, 11 Plc, and NNPC Retail Limited.

The upgrade of the stations to major marketers will grant the firms the opportunity of transacting directly with the NNPC and also, allow them to get products directly at regulated prices of N148/litre.

The major marketers will, in turn, be mandated to sell products to consumers at regulated prices of between N170/N190 per litre depending on where they are located. This action comes amid calls by independent petroleum marketers for the NNPC to break off its monopoly in the oil market.

Some of the Oil marketers had recently criticized the decision of the NNPC to be the sole importer of petroleum products as it said the situation was not helping the petrol market.

While making a presentation diting a workshop titled ‘Deregulation: Understanding the Downstream Supply Chain’ held in Lagos on Monday, the General Manager, Operations, TotalEnergies Marketing Nigeria Limited, Abdulmutalib Rabiu, called on the NNPC to end its petrol import monopoly.

Rabiu further called on the Federal Government to grant licences and allow healthy competition by granting access to foreign exchange to marketers willing to get into the products importation business.

“But so long as NNPCL remains the sole importer of products importation, the amount spent on importation should be published for everyone to see because it is public fund that the company is using to bring in the products,” he noted.

The new move by the NNPC to upgrade the oil marketers has, however, been greeted with applause and criticisms from different quarters since the decision was taken.

While some industry watchers have agreed the decision will help improve fuel supply across the country, some others have questioned the importance of the decision and also argued that it will not have any impact on the fuel scarcity currently witnessed across the country.