Petrol Price in Nigeria has been increased by N9 per litre.

 

Private Depots have raised the price of Premium Motor Spirit (PMS) or petrol to N157 per litre from N148 per litre in various parts of the country, according to reports.

 

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An investigation by Vanguard, which was reviewed by Ejes Gist Nigeria yesterday, revealed that the development has discouraged many marketers, particularly members of the Independent Petroleum Marketers Association of Nigeria (IPMAN), who get 90% of their petrol from DAPPMAN members’ depots.

 

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Mike Osatuyi, the National Operations Controller of the Independent Petroleum Marketers Association of Nigeria (IPMAN), confirmed the event in a telephone conversation with Vanguard, saying: “We are aware of the development because our members procure about 90% of supplies from DAPPMAN members.” For the time being, we are hesitant to lift. However, we will soon be forced to sell at a greater price in order to recoup our costs.”

Their reluctance, he claims, stems from the fact that the government would not allow them to sell above the restricted band of N162-N165 per litre.

According to a Vanguard investigation, the increase in the price of gasoline was caused by the high exchange rate, which is currently hovering about N570 per dollar on the illegal market.

The Nigerian National Petroleum Corporation, NNPC, remains the sole importer of the product into the country under the existing structure, allowing the government to subsidise the product.

 

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However, private depot owners who talked with Vanguard claimed they get petroleum from the NNPC in the high seas, incurring the added cost of using vessels to transport the product to their locations.

They claim that the vessels are paid in dollars, which they obtain at a rate of N570 per dollar, resulting in additional costs that cannot be recovered at the existing regulated price of the product.

Olufemi Adewole, the Executive Secretary of DAPPMAN (Depot and Petroleum Products Marketers Association of Nigeria), could not be reached for comment last night.

However, a person close to the industry said: “Certainly, selling gasoline at the regulated price has become difficult or impossible, especially now that we are incurring costs in dollars.”

However, the development dates back to 2018, when Abba Kyari, the previous Chief of Staff to the President, addressed a letter to the Minister of Transport alerting him of President Muhammadu Buhari’s assent to stop charging in US dollars.

“Kindly note that the President has approved that Nigerian Ports Authority and Nigerian Maritime Administration and Safety Agency, NIMASA charges, relating to petroleum products.

However, the instruction was not followed, and the practise of basing charges on dollars continued.

 

In any case, Malam Garba Deen Muhammad, Group General Manager, Group Public Affairs Division, NNPC, said: “We have enough product to last over 30 days.” It is unnecessary if they are worried as a result of the reforms’ changes.”

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