Motorists in the Plateau State capital are experiencing a price disparity for Premium Motor Spirit (PMS), with stations operated by the Nigerian National Petroleum Company Limited (NNPC) selling fuel at a lower rate than independent marketers.
Checks conducted on Wednesday, 14 October, revealed that NNPC outlets sold petrol at ₦1,420 per litre, while other filling stations in the city charged between ₦1,472 and ₦1,492 per litre.
The price gap, which ranges from ₦52 to ₦72 per litre, has forced many motorists to queue at NNPC stations to take advantage of the lower costs, increasing congestion at these outlets across the state capital.
Fuel Price Deregulation and Market Volatility
The current pricing situation in Plateau State is a reflection of the broader deregulation of the downstream petroleum sector in Nigeria. Since the removal of the fuel subsidy in May 2023, petrol prices have been determined by market forces, including international crude oil benchmarks, exchange rates, and local logistics costs.
Under this regime, the NNPC Ltd often serves as a price benchmark. However, independent marketers frequently charge higher rates to cover their specific operational overheads, transportation costs from depots, and thinner profit margins compared to the state-owned company.
In Plateau State, the distance from major distribution depots and the cost of transporting fuel to the interior of the state often contribute to the price hikes seen at independent outlets. This logistical burden is passed directly to the consumer, leading to the variance observed in Jos.
The disparity in pricing frequently creates artificial scarcity at cheaper stations, as demand surges for the most affordable option. This often results in long queues, which can lead to operational inefficiencies and frustration for commercial drivers who rely on daily fuel budgets to sustain their livelihoods.
For the average resident of Jos, the increase to nearly ₦1,500 per litre at some stations puts further pressure on household incomes. In a city where many rely on commercial motorcycles (okada) and tricycles (keke) for movement, these fuel price fluctuations typically lead to immediate increases in transportation fares.
Economic analysts note that such price variations across different outlets in the same city indicate a lack of uniform pricing transparency, despite the oversight role of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
The situation remains an unresolved challenge for motorists who must now choose between waiting in long lines at NNPC stations or paying a premium at independent outlets to save time.
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