Petrol Prices Could Soar Above N700 per Litre- Warns Oil Industry

The impending increase in petrol prices anticipated next month as independent marketers venture into product importation

Oil marketers in Nigeria have issued a cautionary statement, highlighting the likelihood of a significant surge in the price of petrol, potentially exceeding N700 per litre. This increase is expected to occur next month, coinciding with the commencement of independent marketers’ importation of petroleum products into the country.

Mike Osatuyi, the National Controller Operations of the Independent Petroleum Marketers Association of Nigeria, disclosed that prices could rise to above N700 per litre in the northern regions once independent marketers initiate product imports in July. While residents in the northern states may be subjected to paying N700 and above per litre, individuals residing outside Lagos should anticipate prices around N610. Meanwhile, Lagos residents are projected to pay approximately N600 per litre.

Osatuyi stated, “What I am seeing is around N600 and above, depending on the exchange rate, the current crude price at the international market and the landing cost. Those in Lagos will pay around N600, those outside Lagos around N600 plus, while those in the north would be paying anything from N700 and above.”

Currently, the downstream sector eagerly awaits a fresh supply of petroleum products, as the Nigerian Midstream and Downstream Petroleum Regulatory Authority continues to grant licenses to operators interested in engaging in the importation business.

Olufemi Adewole, the Executive Secretary of the Depot and Petroleum Products Marketers Association of Nigeria, revealed that preparations are progressing rapidly for the arrival of new products in July. Adewole emphasized that the prices of petroleum products would be contingent upon market fundamentals.

Adewole posed a question, stating, “Where do countries like Ghana, Benin, and Cameroun get their products from? Is it not from Nigeria?” He referred to the issue of products being smuggled from Nigeria to neighboring countries.

He further explained, “Prices of products will depend on market fundamentals, and as we speak, the Nigeria Customs Service is delaying some AGO (diesel) vessels because of the 7.5 percent VAT. And don’t forget, any cost incurred by marketers would be added to landing cost, and then to the pump price. The marketer would also have to add profit because they must make a profit.”

As the independent marketers prepare to assume a prominent role in product importation, consumers across Nigeria brace themselves for a potential escalation in petrol prices, raising concerns about the economic implications for the nation’s population.

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