Petroleum marketers in Nigeria have hiked the pump price of petrol from the current N165 to N185 per litre, across the country.
Spokesperson for the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, who confirmed the development, said marketers have to cover their cost of operation.
He lamented that marketers have been running at a loss these past few months, while pointing out that most petrol stations closed down because of this.
According to him, “Abinitio, we have also stated that there is no way marketers will buy products from private depots who are now selling at N170 and some at N167 depending on the area the tank farm is situated. These private tank farms owners have made it clear that they cannot sell at government approved price.
“Marketers cannot buy at N167-N170 and you expect them to sell at N165. This is why marketers have looked at the high cost of logistics because diesel is at N850 per litre now and to transport product from these wet areas to dry areas cost a lot of money.
“If you look at Abuja you will see that it does not have any depot that supplies petroleum products. All petroleum products in Abuja, Kano and other northern areas of the country are being taken from wet areas like Lagos, Calabar and others which have seaports.
“The products are all imported and Nigeria is heavily dependent on imports because the refineries are not working. So the private tank farms are now used to supply petroleum products to marketers. We are now left in their hands and whatever they sell to us, we will mark up our margins and sell to customers, the end users”, he added.
The IPMAN spokesperson explained that pump prices would vary from one filling station to another across the country because of where the product was sourced by the marketer.
“While those (marketers) in Calabar might buy at N170 or those in Port Harcourt at N162 or those in Lagos at N163 depending on how the tank farm owner got his product, if you include cost of logistics and the numerous taxes government have imposed on us, then the end result is what you are seeing”, Ukadike added.
Meanwhile, metrowatchxtra observed that the increase in the price of petrol came barely 24 hours after Major Oil Marketers Association of Nigeria (MOMAN) lamented that the current price was no longer realistic.
* Adapted from a report by Vanguard
