Ninety percent of depots operated by independent oil marketers have been closed, attributing the shutdown to supply shortages caused by currency volatility and challenges in the local distribution channel, as noted by industry insiders.
According to Mohammad Salaudeen, the executive director of Northwest Petroleum and Gas Limited, fewer than 10 percent of the marketers holding licenses to import petrol under deregulation have been able to engage in such imports.
During a panel session at the ongoing Oil Trading and Logistics Africa Week 2023 in Lagos, Salaudeen, representing Winifred Akpani, MD/CEO of the firm, highlighted how operations in the oil sector, spanning from importation to distribution to end users, have been hampered by the instability of the dollar-naira exchange rate, resulting in elevated operational costs.
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He expressed concern about the Nigerian National Petroleum Company (NNPC) Limited’s retail stations intermittently ceasing operations, which has raised questions about the prospects for independent marketers.
Salaudeen emphasized that the current challenges revolve around the inability to import the product and the limited volumes brought in by the NNPC. This situation has led to a waiting game among marketers, where they must wait for their turn to receive supplies, creating delays and hindrances for the industry.
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