Fuel queues vanish on secret price hike deal between NMDPRA and marketers
By Jeph Ajobaju, Chief Copy Editor
A secret deal between Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) officials and oil marketers raising fuel price to between N170 and N190 per litre has led to the disappearance of fuel queues in Lagos and Abuja.
Marketers denied holding such a meeting with the NMDPRA but inside sources confirmed the two bodies met and agreed that pump price be raised by N10 per litre.
“The meeting was held and everybody was told to keep mum [about it]. A band of N165-N175/litre was approved for the filling stations inside towns, while N189 was approved for those outside towns,” a source disclosed.
Price display boards at some petrol stations in Lagos reflect between N170 and N175 per litre, against the official price of between N162 and N165. Some stations sell at N185 per litre.
Independent Petroleum Marketers Association of Nigeria (IPMAN) National Operations Controller Mike Osatuyi denied the meeting with the NMDPRA but confirmed a new “market fundamentally determined price.”
He said “petrol now sells between N175-N180 per litre depending on the area. Petrol is now available and as you can see, the queues in Lagos and Abuja have disappeared.
“We are businessmen and it’s impossible for us to run at a loss. Marketers are allowed to sell at a minimum price of N170 and a maximum of N180.
“There’s something we call market fundamentals; this is what came into play here. This is because it is impossible to bring the product into your station at N170 and sell at N165.”
________________________________________________________________________
Related articles:
Fuel palaver to end with Dangote Refinery up and running
NNPC promises fuel scarcity will end this week
Marketers row with depots over 16.6b litre fuel diversion
________________________________________________________________________
Official price 12 years old
Asked if there was a circular from the NMDPRA to the effect, he said “no”, and stressed “there was no meeting but what you saw was simply an increase due to market forces.”
Osatuyi said the price template of the Pipelines and Product Marketing Company (PPMC) of between N162 and N165 per litre was devised in 2010, per The PUNCH.
“The template is 12 years old when the dollar was still N175 and diesel was sold at N200/litre. Now, diesel is around N850. Even major oil marketers have changed their price boards to reflect the new band. It’s no more hidden.
“It is better for fuel to be available at N180 or N185 than buying at N250 from black marketeers. Now, no more boys going around with jerry cans, you can drive in and buy with ease.”
Fuel queues in Lagos and Abuja, which had lingered since February, suddenly vanished last weekend.
