Nigerians should prepare for increase
Fuel Price
Product might cost N151 per litre soon
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.
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.”
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