Orient Energy Review

Fuel Scarcity Looms as IPMAN Protests Fuel Price Increase

IPMAN Directs Members to Sell Fuel at N162 Per Litre

   …Threatens to stop lifting petroleum products

Nigeria is heading for another fuel scarcity crises as the Independent Petroleum Marketers Association of Nigeria (IPMAN) threaten to stop lifting petroleum products in all South West depots.

According to IPMAN, the recent petroleum products price increment by the Petroleum Products Pricing Regulatory Agency (PPPRA) is “unfavourable” to their members.

South West chairman of IPMAN, Dele Tajudeen, at a press conference last weekend, accuse the Petroleum Products Pricing Regulatory Agency of not consulting with the stakeholders in the sector before embarking on the price increment.

While announcing last Wednesday of the increase of product prices for July, PPPRA said consumers of petrol in the country would pay a 16.4% increase in the price of petrol. The agency said the approved new retail price for petrol for the month will vary between N140.80 and N143.80 per litre price band.

The new price arrangement replaces the previous price band of N121.50 and N123.50 per litre announced by the agency for June 2020. The agency said the approved new retail price for petrol for the month will vary between N140.80 and N143.80 per litre price band. The new price arrangement replaces the previous price band of N121.50 and N123.50 per litre announced by the agency for June 2020.

The IPMAN chairman said the new price regime of N143.8kobo came as a surprise, noting that the government moved the depot price from N111.78 kobo to N133.72 kobo and pump price to N140.80 kobo without considering the marketers’ plights, a situation he described as “unfortunate.”

PPPRA however stated that the new prices came after a review of the prevailing market fundamentals in the month of June, and considering marketers’ realistic operating costs as well as practicable. Explaining further on their decision, PPPRA said the ex-depot price for collection includes the statutory charges of bridging fund, marine transportation average, National Transport Allowance (NTA) and administrative charge.

“All marketers are advised to operate within the indicative prices as advised by the PPPRA,” said the agency. The implication of the new prices is that all petroleum products marketing companies throughout the country are permitted to sell at any price with the approved price band of N140.80 (lower limit) and N143.80 (upper limit) during the month.

The lower limit represents the least retail price per litre a marketer can dispense fuel, while the upper limit is the ceiling retail price the marketer cannot exceed in dispensing the product. In line with the approved price modulation template, marketers can sell the product at any price within the band during the period.

Chibisi Ohakah, Abuja