Nigerians to pay more for petrol with increase in ex-depot price ― Oil marketers

Following an increase in the ex-depot price of Petroleum Motor Spirit (PMS), Oil marketers on Wednesday warned that Nigerians may have to pay more for the commodity.

The Petroleum Products Marketing Company, (PPMC), a downstream subsidiary of the Nigerian National Petroleum Corporation (NNPC) had on Tuesday, fixed the ex-depot price of (PMS) also known as petrol, at N138.62 per litre.

In a memo signed by its Manager, Sales, Mohammed Bello, in Abuja, the PPMC, said the new price becomes effective from August 5, 2020

However, reacting to the developments, Oil marketers lamented the pricing challenges currently facing the sector.

They stated that the commodity prices will now differ, as marketers may now sell at a price best suitable to them.

Speaking to Tribune Online, the National President, Petroleum Products Retail Outlets owners Association of Nigeria (PETROAN), Dr Billy Gillis-Harry lamented the Federal Government (FG) control of fuel prices saying this has continued to affect businesses of marketers.

He said with the new ex-depot price, there is an indication that Nigerians will pay more as other macro-economic variables would be impacted.

His words: “We woke up yesterday to have the PPMC shut down approach N138.62 per litre to buy Petroleum products from them. Once that happens, obviously, the price at which we are going to sell will also be higher and of course, you have the attendant value because the whole microeconomics value will be impacted.

“So we are careful to wait and discuss with the authorities to have a ‘jaw jaw’ on the matter so that we do not just come out with a price because as it is now if retailers fix prices at N149 or N150, he might be running afoul of the PPRA projection and we are careful not to do that.”

Gillis-Harry said marketers are currently at a fix as to what the new pump price will be adding that there are plans for stakeholders meeting with the FG, after which he said, they would come up with a new price.

“Right now, it has thrown the over 300,000 marketers into confusion but the only way we can do this successfully is when we are able to sit on a round table to discuss and agree on what is commensurate because there are a lot of cost implications in running retail outlets.

“What I can say right now is that we are not in the situation where we can say that we are going to fix our retail price, right now, all our members are sitting in limbo but we are waiting and hoping that after this consultation, we should be able to get a price.

“I have read in the papers where N150 per litre was speculated but this might not be the case, it may be more or less but we need to be able to sit down and look at the realities of what is involved and also the pockets of Nigerians because it will affect so many things,” he stated.

Also, the National President, Independent Petroleum Marketers Association of Nigeria (IPMAN ), Mr Chinedu Okoronkwo said the system of market dynamics will have to play out in pricing.

According to him, there would no longer be price uniformity adding that the development further showed that the market has been deregulated.

He said: “The market is dynamic, you sell as you buy. You are buying at N133 and now buying at N138 the same price will not suffice. Definitely, this is showing that the market is being totally deregulated. You don’t expect uniform prices any longer.

“Some can make with N1 to make their profit while some will look at N5. If you put N150 and another person is putting N148 people will start going to that place. As I said, it is market dynamics that will determine the price.”

He further stressed the need for Petroleum products to be produced locally saying only with this would the pricing issues can be nipped in the bud.

“With this, some of these factors would have been eliminated and it would be cheaper going forward, “Okoronkwo added.

 

YOU SHOULD NOT MISS THESE HEADLINES FROM NIGERIAN TRIBUNE

FG Increases Hate Speech Fine From N500,000 To N5m
THE Federal Government has announced that its newly- unveiled reviewed Nigeria Broadcasting Code has provisions to increase the hate speech fine for people found culpable of hate speech from N500,000 to N5 million. This is as it said the amendment of the broadcasting code is boosting local content, among other provisions…Nigerians to pay more for petrol

Another Alleged N6.2bn Palliative Fraud Hits NDDC •Official Petitions Senate, Demands Dissolution Of IMC
FEW weeks after the nation was treated to mindboggling revelations of misappropriation of N1.5 billion by the Interim Management Committee (IMC) of the Niger Delta Development Commission (NDDC), the Federal Government intervention agency is in the news again over alleged embezzlement of N6.2 billion approved for palliative by President Muhammadu Buhari…Nigerians to pay more for petrol

Chinese Loans: $400m Project Abandoned After Completion
THE National Public Security Communication System project for which Nigeria took a $399.5million from China and has paid $76.83million as part of the principal as well as $84.92million interest has been abandoned, Nigerian Tribune can authoritatively report…Nigerians to pay more for petrol

China’s Greek Gift To Nigeria
A report in a British tabloid in December 2006 indicated that Britain paid the final payment on a multi-billion-dollar loan it obtained in 1945 for rehabilitation, reconstruction of its infrastructure after the devastating the Second World War. According to the report, its creditors were the United States and Canada, which Britain transferred £43 million and £12 million respectively. The original loan of $4.34bn which was equivalent to £27bn as of 2006, was drawn to prevent Britain from falling into bankruptcy due to aggravated and colossal damage caused by…Nigerians to pay more for petrol