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‘No plan to hike petrol price to N700’, IPMAN reveals

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Independent Petroleum Marketers Association of Nigeria (IPMAN) and Association of Distributors and Transporters of Petroleum Products (ADITOP) have debunked plans to increase petrol price to N700 per litre.

The Associations in an interview with the newsmen, in Abuja on Saturday, dismissed reports of the alleged increase of pump price.

It said fuel price was being driven by market forces and given by the current high exchange rate, the pump price of Premium Motor Spirit (PMS), otherwise called petrol could increase, hence the prediction.

Speaking with newsmen, IPMAN President, Chinedu Okorokwo refuted the reports indicating hike on fuel price from July 1, “as mere speculation and should not be given light.

“The increase in pump price would only be caused by high dollar rate which could affect the importation of petroleum products”.

According to him, in the light of deregulation, the oil market is open for importers who wished to do the business and would only be licensed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

Also, ADITOP President, Alhaji Lawan Dan-Zaki attributed the prediction to the high exchange rate being experienced at the moment, adding that importers would only sell according to what was obtained at the international market.

He urged Nigerians to exercise patience because due to the deregulation being experienced, the PMS price would continue to fluctuate because of the market forces till it stabilised.

Dan-Zaki said the NMDPRA had issued licenses to five companies for importation of fuel.

“As of now, no cargo comes with the high price, marketers are just predicting. The importers are also very clever, they just want the government to intervene and consider them in giving lower price, exchange rate.

“As time goes on when the competition begins, the pump price of fuel will come down because it is only the market competition that will bring the price down.

He said due to the deregulation, the government must allow the market force on demand and supply to determine the price.

Dan-Zaki said that though government has allowed the marketers to import fuel by themselves, the exchange rate and the rate Naira struggles for value against dollar affect the market.

“The former official exchange rate by the Central Bank of Nigeria (CBN) is not realistic anymore.

“So if an importer is importing product, he has to buy at black-market rate and that will determine how much to be sold to marketers and other consumers.

“If he imports at N700 per dollar, there is no way a marketer will buy at N700 and still sell at same price,” the ADITOP president said.

He urged the Federal Government to ensure that the local refineries, including Dangote’s resumed operations soon to end importation and guard against fuel price hike in the country.


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