Petrol Price Rises Above N1,500 as Marketers Shut Filling Stations to Support Strike
- Fuel scarcity hit residents of Benue state following the petrol tankers' protest over unfulfilled compensation
- Several filling stations closed, and black market operators took advantage of the situation to hike prices
- The state government pleaded with the petrol tankers to suspend their strike and return to work
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Petrol Tanker Drivers (PTD) branch of the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) is currently on a 3-day warning strike in Benue state.
In solidarity, petrol station owners across the town shut their doors.
Source: Getty Images
The sudden shutdown has sent petrol prices skyrocketing to hit new levels as black market operators have taken advantage of the situation.
Vanguard reports that desperate motorists and commercial motorcycle operators who have been left stranded are resorting to black market operators who are selling petrol for as high as N1,700 per litre.
Prices vary depending on the location within the town, with some areas seeing prices at N1,600.
The price is a massive N775 difference when compared to the N945 it was sold for before the showdown.
According to a member of the Independent Petroleum Marketers Association of Nigeria (IPMAN) in Benue state, who was quoted in the report said the strike action was taken following unresolved grievances.
He said"
"A few years ago, youths attacked a petrol-laden truck on the Makurdi-Aliade road and siphoned its contents. Promises of compensation by the former administration were never fulfilled."
He added that efforts by NUPENG and IPMAN to engage the current administration for redress reportedly met with resistance, prompting the decision for a warning strike.
The IPMAN member stated:
"All fuel station managers were instructed to cease operations during this period. "Heavy penalties of up to N500,000 were threatened for non-compliance, leaving no stations operational."
Source: Facebook
Benue govt urges NUPENG to end strike
Meanwhile, the Benue state government has urged NUPENG to call off the strike, noting that the strike was uncalled for.
Deborah Aber, the secretary to the State Government (SSG), stated that the government received a letter from NUPENG requesting payment of over N40 million as compensation for the vandalised PMS tank in 2022.
She said:
“In the letter, they were asking for payment for their 45,000 litres of PMS they lost through the activities of vandals in 2022 at Aliade.
“We needed to sit down and look at the whole scenario and how it played out. To us, it seemed like a straightforward case of theft and vandalism, with no government involvement.
“We have held several meetings with them. Surprisingly, we woke up today to find that the stations were locked. The government too is surprised because we are still at the discussion table.
“When we received the letter, we wrote to the police and DSS to furnish us with what happened that time.
“In the letter they were claiming payment of over N40m for the loss of their goods in 2022."
PETROAN calls for fair market practices
The Petroleum Retail Outlets Owners Association of Nigeria (PETROAN) has called on regulatory bodies like the Federal Competition and Consumer Protection Commission (FCCPC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to investigate and ensure fair market practices.
While acknowledging Dangote’s contribution to the industry, PETROAN’s National President, Mr. Billis Gillis-Harry, emphasised that business success should not come at the cost of monopolising the sector or endangering other operators.
He also reiterated PETROAN’s earlier criticism of Dangote’s forward integration strategy, warning that it could lead to widespread job losses and market dominance.
With its massive 650,000 bpd capacity, the refinery was expected to focus on global competition rather than downstream distribution.
The association alleged that Dangote’s pricing strategy could be aimed at squeezing smaller operators out of business, threatening the survival of independent marketers and thousands of jobs.
It also raised concerns over the deployment of 4,000 CNG-powered tankers by the company, which could further impact the livelihoods of existing truck drivers and transport operators.
NNPC increase petrol prices
Earlier, Legit.ng reported that the NNPC Limited decided to increase the pump price for Premium Motor Spirit (PMS) in Nigeria.
The new price followed changes announced by petrol importers and the Dangote Refinery amid the global oil price increase.
NNPC Limited retail outlets sold higher rate than the rate offered by Dangote refinery partners.
This article has been updated by the head of business desk, Victor Enengedi, with additional information.
Proofreading by Funmilayo Aremu, copy editor at Legit.ng.
Source: Legit.ng
