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Petrol Prices To Reach N700 Per Litre, Say Marketers

Waffi TV’s investigation revealed that as of June 19, the cost of one liter of petrol in Ghana, Cameroon, and Benin exceeded N800 per liter.

By Johnson Atoukudu:

According to oil marketers, there is a projection that the cost of petrol at the pump in Northern Nigeria may surpass N700 per liter, beginning in July.

Mike Osatuyi, the National Controller of Operations for the Independent Petroleum Marketers Association of Nigeria, stated that prices in the north could exceed N700 per liter when independent marketers commence importing products in July.

Osatuyi mentioned that individuals residing in northern states could potentially pay more than N700 for a liter of petrol, while those outside Lagos should anticipate a price of approximately N610. Residents of Lagos, on the other hand, are expected to pay around N600 per liter.

“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 is currently granting licenses to operators interested in participating in the importation business, which is eagerly anticipated by the downstream sector. According to Olufemi Adewole, the Executive Secretary of the Depot and Petroleum Products Marketers Association of Nigeria, more importers are being licensed by the NMDPRA. He mentioned that preparations are in full swing to bring in new petroleum products starting from July, and the prices of these products will be determined by 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 recent conversation on Monday, Tunji Oyebanji, the former chairman of the Major Oil Marketers Association of Nigeria and the CEO/Chairman of 11 Plc, mentioned that consumers should anticipate new fuel prices that are similar to the prices of diesel and those observed in neighboring African countries that import petrol.

Waffi TV’s investigation revealed that as of June 19, the cost of one liter of petrol in Ghana, Cameroon, and Benin exceeded N800 per liter.

Presently, petrol is being sold in Nigeria at approximately N495 or higher, while diesel prices are approaching N800 per liter.

“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 further noted that the price may be adjusted 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.

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