According to oil marketers, starting in July, the price of petrol at the pump in Northern Nigeria might exceed N700 per litre.
When independent marketers begin importing goods in July, according to Mike Osatuyi, National Controller Operations for the Independent Petroleum Marketers Association of Nigeria, prices in the north may soar over N700.
While residents in the northern states may spend as much as N700 or more for one litre of fuel, he said those living outside of Lagos should plan to pay approximately N610, as Lagos residents will pay about 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,” he said.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority are still issuing licenses to businesses seeking to engage in the importation industry while the downstream sector waits for new petroleum products.
Olufemi Adewole, executive secretary of the Nigerian Depot and Petroleum Products Marketers Association, stated that the NMDPRA was presently licensing additional imports.
He stated that preparations for fresh items starting in July were well underway and added that product prices will be based on market factors.
“Where do countries like Ghana, Benin, and Cameroun get their products from? Is it not from Nigeria?,” he asked, making reference to products being smuggled from Nigeria to neighbouring countries.
“Prices of products will depend on market fundamentals, and as we speak, the Nigeria Customs Service is delaying some AGO (diesel) vessels because of the 7.5 per cent VAT.
“And don’t forget, any cost incurred by marketers would be added to landing cost, and then to the pump price. The marketer would also have to add profit because they must make profit,” he said.
In a conversation on Monday, Tunji Oyebanji, the chief executive officer and chairman of 11 Plc and a former chairman of the Major Oil Marketers Association of Nigeria, advised consumers to anticipate new pump prices that are comparable to those of diesel and other neighboring African nations that import petrol.
According to research done by The PUNCH, the cost of one litre of petrol in Ghana, Cameroon, and Benin as of June 19 was already more than N800 a litre.
In Nigeria, the price of petrol is now N495 and over, while that of diesel is close to N800.
“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.
Oyebanji, however, added that the price could also be reduced depending on the exchange rate.
“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,” he said.
