"Be Prepared To Pay 700 Naira/Litre For Petrol", Marketers

 

According to projections made by the Independent Petroleum Marketers Association of Nigeria, the pump price of fuel could rise to as high as above N700 per litre in Northern Nigeria the moment independent marketers start importation of petroleum products beginning from July. 

This statement was made by the association's National Controller Operations, Mr. Mike Osatuyi, while speaking to the media last Wednesday.

He also stated that those residing within Lagos should expect that they would be paying around N600 per litre.

“What I am seeing is around N600 and above, depending on the exchange rate, the current crude price at the international market and the landing cost. Those in Lagos will pay around N600, those outside Lagos around N600 plus, while those in the north would be paying anything from N700 and above,” Osatuyi said.

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Tunji Oyebanji  who is a former chairman of the Major Oil Marketers Association of Nigeria, in a seperate chat on Monday also agreed with Mr. Osatuyi stating that he foresees a further hike in pump prices close to that of neigbouring African countries.

It is reported that neighbouring countries like Ghana already sell fuel above 800 naira per litre as opposed to Nigeria which sells at 495/litre

“The truth now is that if you look at the prices of other West African countries that also import petrol, then, you will have an idea of what the price will likely be once companies start importing. So, if the price we have now is not anywhere close to theirs, then, we are not yet there. Another indicator should be the current price of diesel,” he said.

He however stated that the accuracy of his projection would be dependent on the outcome of exchange rates. 

“The bottom line is that there will be an adjustment in price. Yes, it may go up now, it could also drop depending on the exchange rate. But the good thing is that products would be everywhere, and if you see that yours is more expensive than those of the filling stations around you, you will be forced to bring down prices so customers can come and buy. There would be healthy competition which is good for the market,” Oyebanji opined.

“We are expecting the roadmap from the Federal Government following the meeting with labour. Labour has said they are giving the government two months to come up with the roadmap. We are also expecting the roadmap on how to deepen the use of Compressed Natural Gas.

“Already, three marketers have been confirmed to start bringing in products starting from July. That’s when we would know the real price of products because it would definitely increase. This current price is just a transitional price,” he said.