Petrol price rises to N240 per litre

...as shortage persists in Lagos

Independent marketers of petroleum products, yesterday, increased the price of petrol further to N240 per litre, from about N230 per litre as shortage persisted in Lagos and its environs yesterday.

It was gathered that the marketers currently lift the product from the depots at N200 per litre, unlike in the past when they lifted the product for N148 per litre.

Consequently, the pump price of petrol has increased to N240 per litre, from the N165 per litre government regulated the price, while the total cost hovered at N220 per litre, including transport and margins.

However, the major marketers, who have much capacity and access to the product continued to sell  at N175 per litre.

Long queues at the retail outlets of the major marketers were, however, noticed yesterday as many motorists and other users preferred to wait patiently for the product.

Meanwhile, some illegal operators were seen in some parts of Lagos, including Ikorodu road, hawking the product in cans and bottles and sold in excess of between N250 and N300 per litre, depending on location.

“Speaking in a telephone interview with Vanguard, the National Operations Controller, IPMAN, Mr Mike Osatuyi, said: “Unlike the past when our members used to lift the product at N148 per litre, they currently lift it at N200 per litre. It would be impossible for them to sell petrol at N165 per litre regulated price. 

“Our members pass through much difficulty to get the product at this time. The marketers also spend much to take the product to many parts of the nation because of the high cost of diesel, currently selling at about N800 per litre.”

Similarly, the National President of IPMAN, Chinedu Okoronkwo, who confirmed the hike in price, put the blame on private depots owners.

He said: “The real cause of the price hike is the incessant increment in price by private depot owners. A litre of fuel is being sold to us at the rate of N210 and N214 per litre. When you add transport and logistics, you can imagine what the figure will amount to.“

“This is blackmail. The major marketers can sell at a low price because they have a depot but sell to us at a higher price and expect us to dispense at the official price. How is that workable and possible?

“We cannot cope with the harsh environment of doing business, caused by private depot owners. We are calling on the federal government to revive our various NNPC depots and remove us from these depots operators. Until the NNPC monitors and sells directly to us, availability cannot be guaranteed.”

A source at Depots and Petroleum Products Marketers Association of Nigeria (DAPPMAN) insisted that there was enough at the depots to meet demands, adding that members of the association had their products sold at the official price at their various filling stations.

He said: “I can tell you for free that the situation is confusing to me. Last week we had a meeting with NNPC who confirmed to have enough products to last for a long time. Certainly, that is true as there are products at the depots to meet demands.”

However, it was gathered that the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, has not done enough to check irregularities, including hoarding, diversion and pump manipulation.

Culled from Vanguard