Fuel scarcity: Marketers project N350/litre pump price

The pump price of petrol could cost up to N400/litre at most filling stations before the end of this year, according to oil marketers.

This will represent an increase of over 100 per cent in the pump price over the period.

Dealers said if the scarcity of petrol failed to abate, its pump price would continue to rise, as they noted that PMS cost was already about N450/litre at the black market in many states.

This came as motorists decried the continued silence of the Federal Government and the Nigerian National Petroleum Company Limited over the lingering crisis in the downstream oil sector.

The National Public Relations Officer, Independent Petroleum Marketers Association of Nigeria, Chief Ukadike Chinedu, told our correspondent that most IPMAN members, who owned bulk of the filling stations across the country, were now subjected to purchasing PMS at about N220/litre, which was why many outlets currently dispensed at about N250/litre and above.

He said the cost of the commodity had been rising due its unavailability and other concerns in the sector, stressing that consumers should be ready to pay between N350/litre to N400/litre before the end of this year.

Fuel for major marketers only

“I’ve always discussed with you frankly on the PMS supply situation in Nigeria. A vessel arrived Port Harcourt depot and the information we got is that it is only for major marketers. This might be happening in some other locations too,” Ukadike stated.

He added, “Where is the volume for independent marketers? We are waiting for that of independent marketers. If NNPC does not declare any volume for independent marketers, we will end up buying the product from major marketers.

“By the time we buy from major marketers, they will sell to us at about N220/litre, and you can imagine the rate which we will have to sell to consumers. So where is our quota?

“We need our quota so that we can buy at the same government approved rate. But by selling to only major marketers, they will resell to independent marketers at between N210 to N220/litre, and we don’t have any option than to buy it.”

Ukadike confirmed an earlier exclusive report by The PUNCH that the ex-depot price of petrol had risen to about N185/litre, adding that when major marketers bought at this rate, they would sell above N210/litre to independent marketers.

“So, if care is not taken, we should be talking around N350/litre to N400/litre for the pump price of petrol before this year ends, considering the way things are going now,” the IPMAN official stated.

He added, “Remember I recently told you that the landing cost of petrol in Nigeria is above N400/litre and it should not be less than N450/litre currently. And I stand to be challenged on this; it is not less than N450/litre now.”