In a recent interview with the newsmen, the Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Association of Distributors and Transporters of Petroleum Products (ADITOP) strongly refuted rumors of an impending petrol price increase to N700 per litre. The associations dismissed such claims as mere speculation and predictions driven by market forces and the current high exchange rate.
The Naira experienced a depreciation of 0.82 percent against the dollar, reaching an exchange rate of N769.25 at the investors and exporters window. This depreciation, coupled with the high exchange rate, crude oil prices, and landing costs, led some oil marketers to predict that petrol prices could rise above N700 per litre in the northern region and around N600 in Lagos once independent marketers commence imports from July.
The anticipation of a potential price hike caused tension and panic buying, as queues of motorists formed at some filling stations in the Federal Capital Territory (FCT) over the weekend. However, NewsGlobal observed that NNPCL retail outlets and others were still dispensing fuel between N540 and N542 per litre.
IPMAN President, Chinedu Okorokwo, stressed that the reports of an impending price hike from July 1st were nothing more than speculation and should not be given credence. He emphasized that any increase in pump price would be driven solely by the high dollar rate, which could impact petroleum product imports. Okorokwo reiterated that under deregulation, the oil market is open for importers who are willing to conduct business and will be licensed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
ADITOP President, Alhaji Lawan Dan-Zaki, attributed the predictions of a price increase to the prevailing high exchange rate, noting that importers would sell petrol based on international market prices. Dan-Zaki urged Nigerians to be patient, as the price of Premium Motor Spirit (PMS) would continue to fluctuate due to market forces until it stabilizes. He revealed that the NMDPRA had already issued importation licenses to five companies.
Dan-Zaki emphasized that the market competition would eventually bring down the price of fuel as more importers participate. He asserted that deregulation required the government to allow market forces of supply and demand to determine the price. However, he acknowledged that the exchange rate, particularly the struggle of the Naira against the dollar, still affects the market due to importers having to buy at black-market rates.
Dan-Zaki urged the Federal Government to prioritize the resumption of operations in local refineries, including Dangote’s refinery, to reduce reliance on imports and guard against future fuel price hikes in the country.
SKJ