Real reason for recent fuel price increase in Nigeria — IPMAN, PETROAN

The national presidents of the Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Abubakar Maigandi and Billy Gillis-Harry, have blamed the recent increase in fuel prices on the conflict between the United States and Iran and the prices charged by petroleum products suppliers.

Fuel pump prices have increased to between N1,310 and N1,345 per litre from between N1,210 and N1,275 per litre in less than two weeks.

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Maigandi said the ongoing conflict was the main reason for the latest increase in petrol prices.

He explained that changes in global oil prices could cause petrol prices in Nigeria to increase or decrease.

“The fuel will sometimes go up and down due to the conflict in Iran and the United States,” he said.

Gillis-Harry, however, said the price retailers pay suppliers for petroleum products directly affects the prices at filling stations.

He blamed suppliers for the latest increase in fuel prices.

“The reality is that once we buy petroleum products at a certain price from the source of supply, it will affect the prices at the retail outlets. So, regardless of the crude oil price coming down, if we are buying, we will not buy products at N1,500 and sell at N1,499 per litre.

“If we buy 1,500 per litre, we must still try to make a minimal markup to be able to pay for the cost of finance, cost of services, cost of logistics, cost of overhead and all of that. So, it is not the doing of the retail outlets. Petroleum members are only going to be selling exactly how they buy.

“So, we don’t buy products and then come and put prices that are not realistic. Our prices are always realistic because we are following a process that gives the Nigerian market or the Nigerian person the opportunity to be better served by petroleum. So, that is what is on the issue.

“It is not from petroleum retailers. The issue is from the supplier,” he said.