Nigerian oil market officials expect gasoline prices at pumps in northern Nigeria could soar above 700 naira a liter from July. Mike Osatui, head of national administration for the Nigerian Independent Oil Dealers Association, said prices in the north could exceed 700 naira if independent distributors start importing agricultural products from July.
He said people living in northern states can pay up to 700 naira or more per liter of gasoline, while Lagos residents pay about 600 naira per liter, so people outside Lagos assume about 610 naira. said it should.
“What I see is around 600 Naira or more, depending on exchange rates, current international market oil prices and landing costs. We pay Naira plus, but northerners will pay 700 Naira or more,” he said. The downstream sector is now waiting for fresh petroleum products as Nigeria’s midstream and downstream petroleum regulators continue to issue licenses to operators willing to engage in import business.
Orphemi Adewole, secretary general of the Nigerian Petroleum Products Distributors Association, said NMDPRA is now granting licenses to more importers.
He said fresh food trading will begin in earnest from July, adding that product prices will depend on market fundamentals.
“Where do countries like Ghana, Benin and Cameroon get their products from? Isn’t it coming from Nigeria?” he said, referring to the smuggling of products from Nigeria to neighboring countries. asked. “Product pricing will depend on market fundamentals, but at the time we speak, the Nigerian Customs Department is delaying shipments of some AGO (diesel) vessels due to the 7.5% VAT. increase.
“And remember, all the costs incurred by the marketers are added to the cost of landing, which in turn adds to the pump price. I need to,” he said.
Tunji Oebanji, former chairman of the Nigerian Major Petroleum Dealers Association and chief executive officer and chairman of 11 companies, said on Monday that consumers expect new fuel prices to rise above diesel prices and neighboring African countries. You should expect it to be close to the price of . import gasoline.
As of June 19, gasoline prices in Ghana, Cameroon and Benin were already over NGN 800 per liter. Gasoline prices in Nigeria are currently around 495 Nigerian or more, while diesel prices are around 800 Nigerian per liter.
“The current truth is that if we look at the prices of other West African countries that also import gasoline, we can see what it will cost companies to start importing. If the price we have isn’t close to theirs, we’re not there yet.Another indicator should be the current price of diesel,” he said.
However, Oebanji added that the price could be lowered depending on the exchange rate. “The bottom line is that there will be price adjustments. Yes, it could go up now, but it could go down depending on the exchange rate. If it turns out to be more expensive than a local petrol station, it will be forced to lower the price so that customers can come to buy.There is healthy competition and that is good for the market.” said he.
Petrol prices surpass N/L 490 at Nigeria Major Oil Dealers Association owned stations and N/L at IPMAN stations across the country following the federal government’s official statement on deregulation of the downstream market after May 29. increased to over 500.
