Dangote minimal hike pushes fuel pump price back up as PENGASSAN predicted
By Jeph Ajobaju, Chief Copy Editor
Fuel pump price has soared from N935 per litre back up to between N1,030 and N1,150 per litre within a week of the Independent Petroleum Marketers Association of Nigeria (IPMAN) denying any increase in the offing and 24 hours after Dangote Refinery reversed gear and hiked ex-depot price from N899 per litre to N955.
The same Dangote Refinery had in the Yuletide season slashed ex-depot price, citing market forces, which led to a price war among major players that saw a general drop to N935 per litre at filling stations almost across the board.
A day after IPMAN North West chapter Chairman Bashir Tahir denied claims of price rise now or in the near future, Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) President Festus Osifo on Thursday projected a price increase at the association’s National Executive Council (NEC) meeting in Lagos.
Osifor pressed for better foreign exchange (forex) rate management, warning that fuel pump price may increase “in the coming weeks” if crude oil price on the international market continues to rise.
An email Dangote Refinery sent to its customers on Friday confirmed the new price template, saying marketers buying between two million and 4.99 million litres would now pay N955 per litre and hauling five million litres and above would cost N950/litre.
This represents a N55 or 6.17 per cent increase from N899.50/litre Dangote Refinery announced as a holiday discount for consumers in December.
Its price increase has sparked different degrees of retail price adjustments across filling stations.
IPMAN spokesperson Chinedu Ukadike confirmed the product may sell above N1,100 per litre across members’ filling stations nationwide.
“Commuters will likely pay over N1,150 per litre at faraway locations, while locations close to the depot will pay N1,100. This is because we will add about N50 logistics costs. Currently, ex-depot prices have increased to N980.
“This change is immediate because crude oil price increase, too, is immediate,” he explained.
Petroleum Products Retail Outlet Owners Association of Nigeria (PPROOAN) President Billy Gillis-Harry said although it is too early to project retail price after Dangote Refinery’s hike, it is certain the product would cost more.
He added: “Because right now, we still have an obligation with the MRS to be selling at N935, and some of us bought products there. So, if they change their prices because of the Dangote price, then the conversation will be different.
“After the price of buying, there must be the price of logistics. Once that is computed, we can then look at what is the most humane profit margin.”
Filling stations in Abuja and environ have already effected at least a N50 adjustment to their pump price. Stations that sold on Friday morning at N980 per litre later raised the price to between N1,040 and N1,155.
Nigerian National Petroleum Company Limited (NNPc) retail outlets still sold at N965 per litre as of Friday evening even as depot owners had increased their price on Thursday.
Read also:
PENGASSAN contradicts IPMAN, projects fuel pump price rise on volatile international crude costs
