IPMAN denies reports, says price will reduce upon resumption of operations of local refineries
By Jeph Ajobaju, Chief Copy Editor
Reports of a looming increase in petrol prices nationwide have been denied by the Independent Petroleum Marketers Association of Nigeria (IPMAN), assuring that local refineries are now operational to contribute to price reduction.
IPMAN North West chapter Chairman Bashir Tahir told the Voice of America that claims of a plan to raise fuel price are not true, stressing that none of IPMAN’s members has increased the price of the commodity anywhere in the country.
“The market now determines prices, and there is no truth to the rumors of an increase in petrol prices. While diesel prices have risen recently due to market dynamics, they will naturally fall when market conditions improve,” he said.
He added that the resumption of operations at two national refineries is expected to further stabilise and reduce petrol prices, not raise them.
Tahir was reacting to the news that broke on Monday that loading cost of Premium Motor Spirit (petrol) and other refined petroleum products at depots has gone back up, two weeks after Yuletide reprieve that saw price reductions after Dangote Refinery triggered a price war in the market.
Marketers on Monday raised petrol and diesel prices at depots by N43 or 4.74 per cent due to rising crude oil prices at the international market.
The cost of Brent, the global benchmark for crude, shot up to $79.76 per barrel on Sunday, likely to compel filling stations across Nigeria to further adjust pump prices to reflect the higher costs of refined products.
Data on petrol price movements at loading depots on Monday shows that Swift Depot increased its loading price to N950 per litre from N907 last Friday.
Wosbab Depot increased its price to N950 from N909, Sahara Depot made a similar change to N950 from the N910 it sold a litre last Friday.
Private depot Shellplux raised its loading costs to N960 from N908. Chipet Depot asked retailers to pay N960 per litre. It sold the product at N908 per litre last Friday.
Nipco Depot increased its price by N38, from N912 to N950, Matrix Warri Depot did so from N925 per litre to N945.
Marketers who pick products from Dangote Refinery and resell to other retailers raised their cost to N923 per litre despite buying from the refinery at N899 per litre.
Diesel loading price at Stockgap Depot rose from N1,080 to N1,150 per litre. Ibeto Depot hiked its from N1,050 to N1,150. Sahara Depot on Monday sold its product at N1,150 up from N1,045 last week.
Nipco Depot increased its price to N1,150 from N1,120 while Optima Depot approved a N72 increase to N1,120 per litre from N1,048.
Increase in depot prices for petrol is between 7 and 10 per cent while diesel prices have surged between 5 and 10 per cent, depending on depot and location.
An oil and gas expert, Olatide Jeremiah, alerted that depots are poised to increase the loading price of refined petroleum products further.
“It implies that there is a possibility of increased fuel prices, particularly diesel prices,” said Jeremiah, Chief Executive Officer of petroleumprice.ng
“As of Friday, when Brent crude neared $80, prices selectively increased in some depots in Lagos, and on Monday, prices might be jacked up by importers because a large chunk of oil marketers import petroleum products and Brent crude is a major determining factor in the refining process.”
Bayo Adelaja, another marketer, said: “Depot rates have escalated sharply, and this is directly affecting pump prices. Consumers should expect further fluctuations in the coming weeks.”
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