Petrol Hit N650 Per Litre as Ex-Depot Price Rises to N490 Per Litre, Marketers Give Reasons
- The price of petrol rose sharply on Tuesday, June 20, 2023, as marketers lifted the product above the expected depot price
- Major marketers said they lifted petrol from private depot owners 4.3% higher than before
- The development led to an increase in the price of the product, with some selling for as N650 per litre
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There was fear among Nigerians on Tuesday, June 20, 2023, due to the increase in the ex-depot price of petrol by 4.3% to N490.
The development led to petrol selling above N500 per litre and N12 higher than the N488 per litre price in Lagos.
Source: AFP
Black marketers resurface, selling at high prices
Findings reveal that NNPC still sells the product to major marketers at N446.57 per litre.
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A Vanguard report said that Independent marketers lifting petrol at N490 ended up selling at N520 per litre at their stations.
Some marketers, however, fixed their prices between N488 and N490 per litre, depending on the location.
Many operators who bought the product were seen reselling at N515 per litre on the black market, putting additional costs on retail prices.
Some marketers shut their gates to customers while others hawked the product, selling between N550 per litre and N650 in Lagos's Maryland and Ikorodu areas.
NLC promises on alternative source of fuel
According to reports, the President of the Nigeria Labour Congress (NLC) said the union is working on an alternative, stating that petrol would be left for the rich by the time the NLC is done working on the alternative plans.
Ajaero had earlier hinted that the NLC is working on the Compressed National Gas (CNG) project based on Nigeria's vast natural gas deposits.
He said:
"Based on that, even Innoson Motors came to address us and said he would produce vehicles with provision for CNG and PMS, so if you don't want to buy PMS at N500 and above per litre, you buy CNG.
"If you want to buy CNG at N90 per litre, buy it. But in the construction of the vehicles, you have a switch to whatever you want. If you switch to CNG, you use CNG; if you switch to PMS, you use PMS.
Independent marketers give reasons
President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Okoronkwo, said petrol prices are affected by foreign exchange, stating that the price will be determined on the international market whether positive or negative.
Okoronkwo said:
"With the recent floating of Naira and deregulation of the forex trading windows, allowing the value of Naira to be determined by market forces and the removal of subsidy on petrol, we should expect the situation to change constantly."
Naira's Fall: New petrol price likely as marketers' fuel cargoes arrive July, NNPC cuts imports
Legit.ng reported that on Wednesday, June 14, 2023, the Nigerian government confirmed that other marketers have joined in the import of petrol following the removal of the petrol subsidy.
The federal government revealed that about three mega oil marketers expect petrol cargoes in July, while others have asked for licences to import the product.
The development comes as the Nigerian National Petroleum Company Limited (NNPC), the product's sole importer, reduced petrol imports following the deregulation of the downstream sector.
Source: Legit.ng
