Fuel Might Cost N151 Per Litre Soon

Petroleum marketers are agitating for the price of fuel to be increased to N151 per litre, according to reports.

They said the current price of N145 is not realistic because of the challenges in getting foreign currency, adding that the real cost of fuel should be N151.87k.

This is coming on the heels of reports that there are plans to increase the pump price of fuel soon.

Punch also reports that the marketers also called on the Federal Government to address the issue of the rising dollar, so they can sell fuel at the approved rate of N145.

To forestall any further drop in supply, reports say a stakeholders’ meeting was held to deliberate on the issue.

Those in attendance were officials of the Nigerian National Petroleum Corporation (NNPC), Ministry of Petroleum Resources, the Petroleum Products Pricing Regulatory Agency (PPPRA), Major Oil Marketers Association of Nigeria (MOMAN), Independent Petroleum Marketers Association of Nigeria, Depot and Petroleum Products Marketers Association and Nigeria Association of Road Transport Owners.

An official who was at the meeting, said “Since the ex-depot price is around N133.5 per litre and the selling price is N145 litre, when you remove the ex-depot cost from the selling price, you’ll get about N12. Now, from this N12, consider the distribution margin and other costs from the depot; if all these costs are less than N12, then the marketers are making profits and there will be no complaint.

“But if the reverse is the case, then they have a complaint. I want you to find out what is the marketers’ margin, transporters’ margin, bridging fund, Petroleum Equalisation Fund, administrative charges and more. When you add all these together, you will realise that truly, the marketers are doing all they can to hold the pump price at the N145 per litre band.”

According to Punch, a ministry of petroleum source also said “The issue of forex has been a challenge to both the government and the oil marketers. All of a sudden, the dollar skyrocketed to about N400 and the product we are concerned with here is an international product. So, if they are bringing in the product by buying dollar at N350, then it is obvious that they are really working hard to remain in business.

“For if we are in a truly deregulated market environment, then the price of the product should have increased beyond N145 per litre; there is no doubt about that. Meanwhile, there was a highly confidential meeting between the management of the PPPRA and stakeholders in the sector on this matter.

“I may not be able to tell you the resolutions that were reached concerning the issue of pricing of petroleum products, but the body language of those who participated in the meeting suggests that the government may be considering some form of concessions to the oil marketers as it did for the Muslim pilgrims. We all know that the government cannot afford to increase petrol price again, not at this time.”

Though the Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC), Maikanti Baru, said on Tuesday, August 9, 2016, that no directive has been given to increase the fuel price, Nigerians have to buckle up for any outcome in this unfolding price drama.