….. It is going for N700 from July
Nigerians should brace up as from July to pay more for fuel as Oil marketers in Nigeria have warned that the price of petrol may reach a staggering N700 per litre in northern Nigeria Mike Osatuyi, the National Controller Operations of the Independent Petroleum has revealed.
Marketers Association of Nigeria, said the prices in the north could surpass N700 per litre once independent marketers commence importing products next month.
While residents in Lagos might face prices around N600 per litre, those living outside Lagos should expect to pay approximately N610. However, individuals in the northern states would bear the brunt, shelling out N700 or even more per litre.
These projections have evoked anger and frustration among Nigerians who are already burdened by the high cost of living.
The downstream sector is eagerly awaiting the arrival of fresh petroleum products, as the Nigerian Midstream and Downstream Petroleum Regulatory Authority continues to grant licenses to operators interested in the importation business.
Olufemi Adewole, the Executive Secretary of the Depot and Petroleum Products Marketers Association of Nigeria, confirmed that the NMDPRA is currently licensing more importers, and preparations are underway to receive new products in July. Adewole emphasized that the prices of petroleum products would be subject to market fundamentals.
Amidst these discussions, questions have been raised about neighboring countries like Ghana, Benin, and Cameroon, which rely on imports from Nigeria. The availability and prices of petroleum products in these countries serve as an indicator for what Nigeria might experience. As of June 19, the price of one litre of petrol in Ghana, Cameroon, and Benin had already exceeded N800, far surpassing the current price in Nigeria. Additionally, the cost of diesel in Nigeria has reached N800 per litre.
Tunji Oyebanji, former chairman of the Major Oil Marketers Association of Nigeria and CEO/Chairman of 11 Plc, suggested that consumers should anticipate new pump prices that are comparable to diesel prices and those in neighboring African countries that also import petrol.
Oyebanji acknowledged that the exchange rate could influence the final price and emphasized that healthy competition among marketers could lead to price reductions.
The current price of petrol in Nigeria is considered a “transitional price” following the Federal Government’s subsidy removal, according to Mike Osatuyi. He expressed the expectation that the government would provide a roadmap following discussions with labor unions, and emphasized the need to explore the use of Compressed Natural Gas. Osatuyi revealed that three marketers have been confirmed to commence product imports from July, signaling an impending increase in prices.
Since the official announcement of deregulation in the downstream market on May 29, petrol prices have skyrocketed to over N490 per litre at stations belonging to the Major Oil Marketers Association of Nigeria and above N500 at IPMAN stations across the country. However, Chairman of IPMAN Satellite Depot disclosed that marketers are still loading products at the government-regulated price of N496 per litre. The recent forex policy of the central bank, causing the naira to rise to around N765/$1, has added uncertainties to the business.
To finance importation, depot owners are resorting to both local and foreign loans, as disclosed by Tunji Oyebanji. He stated that numerous companies are actively seeking importation licenses and exploring financing options. However, Oyebanji noted that these companies are not openly publicizing their efforts.
The implications of fuel subsidy removal and rising prices have been felt beyond Nigeria’s borders. Reports indicate that black market fuel vendors and commercial drivers in Cameroon
– Additional details from online reports.
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