FG keeps mum as marketers hike petrol price to N170-N190/litre

There is a growing uncertainty in Nigeria’s downstream sector as marketers increased the price of the premium Motor Spirit, popularly known as petrol to between N170/litre and N190/litre.

Findings by BusinessDay across some filling stations in Lagos revealed that the majority of the filling stations have adopted different price models.

While some filling stations have changed the price on their meters to reflect the current price they are selling at, others have left theirs to show the approved retail price of N165 per litre but were selling above the displayed price.

But the regulators have been silent on the development in the downstream market.

An official price list seen by BusinessDay showed the pump price of petrol rose from N165 to N179 per litre in the southwest, south and southeast regions respectively.

The price was raised to N184 in the northwest and N189 in the northeast, being an N24 increase, the highest in the new adjustment.

Petrol will now sell at N179 in the north-central region. Although the product will sell for N169 in Lagos, marketers will sell for N174 in Abuja.

There is also an upward adjustment in the ex-depot price in the Lagos axis from N148.17 to a range of N160 and 162.

Depot’s in Warri/Ogbarra have their rates adjusted to N162-N165, while Port Harcourt depots will sell for N165-167.

However, marketers under the aegis of the Independent Petroleum Marketers Association of Nigeria confirmed the fuel pump price hike to our correspondent.

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Mike Osatuyi, National Operations Controller, Independent Petroleum Marketers Association of Nigeria (IPMAN) said the cost of getting fuel in the market is above the regulated price.

He said: “We expect them to attack inflation but so far there is no deregulation.”

Osatuyi further talked about the determinants of the petrol price reality in the country.

“We are selling based on market cost plus the margin,” he said. “So if we get fuel for ₦170 per litre, we are not expected to sell it for ₦165.”

At the latest virtual consumer protection workshop for oil marketers by the Federal Competition and Consumer Protection Commission, FCCPC, in Lagos, Olumide Adeosun said the regulated ₦165 pump price for petrol was no longer realistic.

He said: “Any kind of price control mechanism would be difficult to impose on marketers who had to slightly adjust their prices based on how much they bought products from the depots.”

Also, the National President, Natural Oil and Gas Suppliers Association, Bennett Korie, said Nigerians would have to adjust to the current reality, as it was no more feasible to dispense petrol at the approved rate of N165/litre in filling stations after purchasing the product for about N170/litre in some private depots.

Bala Zakka, an oil and gas analyst, said this development depicts lawlessness.

“Unless it is on the back of corruption between government officials/agencies and the other parties involved,” he said.

Zakka further said in a situation where there is no deregulation and some outlets are selling above the required price then the owners of these outlets can be prosecuted for it.

“Then we might also have a case of corruption where some of these suppliers sell above the official rate.

“It is possible that some acts of conniving have taken place to the point where some of the government agencies/officials cannot be near them,” he said. “And that is why they have the boldness to sell above the recommended pump price and nothing is happening to them.”