VMT News Ltd
No 1 News Site in Nigeria

No plan to hike petrol price to N700 – IPMAN

84

No plan to hike petrol price to N700 – IPMAN

The Independent Petroleum Marketers Association of Nigeria (IPMAN) and Association of Distributors and Transporters of Petroleum Products (ADITOP) have denied plans to increase petrol price to N700 per litre.

The Associations in an interview with the News Agency of Nigeria (NAN), in Abuja on Saturday,  dismissed reports of the alledged increase of pump price as prediction and speculation.

It said fuel price was being driven by market forces and given by the current high exchange rate, the pump price of Premium Motor Spirit (PMS), otherwise called petrol could increase, hence the prediction.

VMT NEWS reports that the Naira on Friday dropped against the dollar, exchanging at N769.25 at the investors and exporters window.

The Naira depreciated by 0.82 per cent compared with N763 it exchanged for the dollar before the Eid-el-Kabir holiday that began on June 28.

Some oil marketers had predicted that petrol price could rise above N700 per litre in northern region and around N600 in Lagos once independent marketers start importing the products from July.

Their predictions were based on the current high exchange rate, crude price and landing cost.

The trend caused tension and panic buying as queues of motorists sprung up at the onset of weekend in some filling stations in the Federal Capital Territory (FCT).

VMT NEWS also observed that NNPCL retail outlets and others were still dispensing fuel between N540 and N542 per litre.

Speaking with NAN, IPMAN President, Chinedu Okorokwo refuted the reports indicating hike on fuel price from July 1, “as mere speculation and should not be given light.

“The increase in pump price would only be caused by high dollar rate which could affect the importation of petroleum products”.

According to him, in the light of deregulation, the oil market is open for importers who wished to do the business and would only be licensed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

Also, ADITOP President, Alhaji Lawan Dan-Zaki attributed the prediction to the high exchange rate being experienced at the moment, adding that importers would only sell according to what was obtained at the international market.

Read Also: 75 arrested in Ebonyi over sanitation offences

He urged Nigerians to exercise patience because due to the deregulation being experienced, the PMS price would continue to fluctuate because of the market forces till it stabilised.

Dan-Zaki said the NMDPRA had issued licenses to five companies for importation of fuel.

“As of now, no cargo comes with the high price, marketers are just predicting. The importers are also very clever, they just want the government to intervene and consider them in giving lower price, exchange rate.

“As time goes on when the competition begins, the pump price of fuel will come down because it is only the market competition that will bring the price down.

He said due to the deregulation, the government must allow the market force on demand and supply to determine the price.

Dan-Zaki said that though government has allowed the marketers to import fuel by themselves, the exchange rate and the rate Naira struggles for value against dollar affect the market.

“The former official exchange rate by the Central Bank of Nigeria (CBN) is not realistic anymore.

“So if an importer is importing product, he has to buy at black-market rate and that will determine how much to be sold to marketers and other consumers.

“If he imports at N700 per dollar, there is no way a marketer will buy at N700 and still sell at same price,’’ the ADITOP president said.

He urged the Federal Government to ensure that the local refineries, including Dangote’s resumed operations soon to end importation and guard against fuel price hike in the country.

Support Voice Media Trust journalism of integrity and credibility

Good journalism costs a lot of money. Yet only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government.

For continued free access to the best investigative journalism in the country, we ask you to consider making a modest support to this noble endeavour.

By contributing to Voice Media Trust, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.

Donate into:

Dollar Account:

  • A/C NO: 3003093745
    A/C NAME: VOICE MEDIA TRUST LTD
    BANK: UNITED BANK FOR AFRICA

Naira Account:

  • A/C NO: 1023717841
    A/C NAME: VOICE  MEDIA TRUST LTD
    BANK: UNITED BANK FOR AFRICA

Leave a Reply