Oil marketers and the Federal Government (FG), have reached a subtle agreement to increase petrol prices from the N165 per litre official pump price.
Following the agreement, petrol would be sold between N170 per litre and N190 per litre.
It was gathered that this agreement was reached at a meeting between the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA)and oil marketers, which was held last week.
According to sources at the meeting, it was agreed that the official petrol pump prices in the country should be increased by at least N10 per litre.
Oil marketers, however, denied that the meeting was held, but explained why there was a hike in petrol pump prices.
The National Operations Controller of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Mike Osatuyi stated that there was a fresh increase, describing it as a “market fundamentally determined price.”
“Petrol now sells between N175-N180 per litre depending on the area, ‘’ he said.
“Petrol is now available and as you can see, the queues in Lagos and Abuja have disappeared. We are businessmen and it’s impossible for us to run at a loss. Marketers are allowed to sell at a minimum price of N170 and a maximum of N180.
“There’s something we call market fundamentals; this is what came into play here. This is because it is impossible to bring the product into your station at N170 and sell at N165,” he added.
When asked if there was a circular from the NMDPRA to the effect, he responded “no”, adding, “there was no meeting but what you saw was simply an increase due to market forces.”
Explaining further, he said the Pipelines and Product Marketing Company’s price template, which has the current official price of N165/litre, was arrived at about 12 ago.
“The template is 12 years old when the dollar was still N175 and diesel was sold at N200/litre. Now, diesel is around N850. Even major oil marketers have changed their price boards to reflect the new band. It’s no more hidden.
“It is better for fuel to be available at N180 or N185 than buying at N250 from black marketers. Now, no more boys going around with jerry cans, you can drive in and buy with ease”, he added.
