As Independent Depot Operators lament waning petroleum products supply by the Nigerian National Petroleum Company (NNPC) Limited, marketers have raised concerns that supply gap may affect return on investment.
LEADERSHIP learnt that supply hiccups are currently affecting effective products distribution across major depots operated by independent operators especially in Lagos.
The managing director and chief executive officer, MD/CEO, Winifred Akpani, MD/CEO of Northwest Petroleum and Gas Limited speaking on a panel session titled “Africa Fuels’ Update: Overview of Trends and Market Developments,” at the ongoing Oil Trading and Logistics (OTL) Africa Week 2023 in Lagos, said operations from importation to distribution to the end users have been stifled by the unstable dollar/naira exchange rate, leading to a high cost of operations.
Represented by the executive director of the firm Mohammad Salaudeen, Akpani said less than 10 per cent of the marketers licensed to import petrol since deregulation couldn’t because of the cost of operations.
“We’ve seen the Nigerian National Petroleum Company (NNPC) Limited retail stations not operating at some point. If NNPC stations (that are the big boys) are not operating, what happens to people like us?
“The challenge today is that, firstly, we can’t import the product,” he said. “Secondly, the NNPC brings it in smaller volumes. So what will get to us…We’ll have to wait.”
