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•Ex-depot price climbs to N580/liter
By Adewale Sanyaolu
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has said Nigerians should expect fluctuations in the price of Premium Motor Spirit (PMS), popularly called petro as a result of the deregulation of the petroleum downstream sector.
National Operations Controller of IPMAN, Mr. Mike Osatuyi, told Daily Sun that yesterday’s hike in the price of petrol from N488 to N617 per liter was a reflection of what should be expected in a free market.
Findings by Daily Sun revealed that the hike in price of petrol was sequel to the increase in the ex-depot price of petrol from N446.57 per liter to N580 per liter.
In Abuja, the NIPCO filling stations had adjusted their pump price to reflect the new price of N617 per liter
Findings by Daily Sun revealed that the hike in price of petrol was sequel to the increase in ex-depot price of petrol from N446.57 per liter to N580 per liter.
In Lagos, most NNPC retail outlets had adjusted their pumps from N488 to N568 per liter while some were out of stock filling. Osatuyi disclosed that petrol price going forward will not be static because the variables of market fundamentals which included exchange rate and cost of crude will come to play to determine if price would go up or come down. He explained that since removal of subsidy, the market is now open for marketers to import petrol, thereby breaking the monopoly of NNPC.
He explained that the yesterday’s hike was as a result of an upward movement in the price of crude oil in the international market, galloping exchange rate which currently sells at N820 to a Dollar at both the official and parallel market.
Osatuyi equally added that the old stock of products are almost being exhausted while new ones are being imported, saying the increase is also a reflection of current market realities in the import market.
‘‘Most marketers are beginning to exhaust their old order. So the new cargoes coming in now attract current price of petrol,’’.
Recall that President Bola Tinubu had in his inauguration speech declared that there would no longer be petroleum subsidy regime as the current 2023 budget he glimpsed does not contain it.
The current 2023 budget had provision for the fuel subsidy till June.
Tinubu stated that funds for subsidies will be diverted to other things like public infrastructure, education, health care and jobs.
“We commend the decision of the outgoing administration in phasing out the petrol subsidy regime which has increasingly favoured the rich more than the poor. Subsidy can no longer justify its ever-increasing costs in the wake of drying resources.
“We shall, instead, re-channel the funds into better investment in public infrastructure, education, health care and jobs that will materially improve the lives of millions,” he said.
