"N750/Litre": Petrol Price Increase Coming as Ex-depot Price Rises by 7.6% as Dangote Requests Crude
- A petrol price increase may be on the horizon following a hike in ex-depot prices
- Marketers report the depot owners increased their prices from N568 per litre to N608 per litre
- The move, they say, to allow them to stay in business following Forex scarcity
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The ex-deport price of petrol rose 7.6% to N608 per litre from N565 per litre on Tuesday, November 7, 2023, in Lagos and other places.
Visits to private depots in Lagos revealed that the independent marketers who lift petrol at N608 per litre sell it between N630 and N640 per litre at their petrol stations.
Source: AFP
Marketers reveal difficulty in lifting petrol
Vanguard reports that while stations owned by the Nigerian National Petroleum Company Limited (NNPC) sell the product at N568 per litre in Lagos, the significant marketers fixed their prices between N589 and N590 per litre.
Marketers say a truck of 33 million litres sold at N7.5 million before subsidy removal now costs about N25 million, stating that some marketers share trucks now to stay afloat.
IPMAN speaks on price increase
The President of the Independent Petroleum Marketers Association of Nigeria, Chinedu Okoronkow, stated that subsidy removal eliminated pricing mechanisms.
He revealed that market forces now determine the price at which marketers sell their products.
There have been speculations about looming petrol price increases following the volatility in Forex.
Many marketers have halted petrol imports due to the scarcity of Forex.
NNPC debunks impending price increase
In October, NNPC debunked the report of an impending petrol price increase in Nigeria.
The company stated on its X page, formerly Twitter that it does not intend to raise prices as widely speculated.
The report comes as many petroleum product depots are currently deserted due to exchange rate volatility.
Depot price rises to N720 per litre
The development also follows an increase in petrol's landing cost, which has risen to about N720 per litre at most depots.
Punch reports that oil marketers reported the increase on Thursday, October 5, 2023.
Dealers also revealed that filling stations were shutting down in large numbers as it was becoming challenging to run business, saying that the situation could lead to scarcity in the coming months.
Energy Policy Analyst and Team Lead, Platforms Africa, Adeola Yusuf, told Legit.ng that there are no indications currently on an impeding petrol price hike.
"I am very certain that the government is doing everything to avoid inflicting further hardships on Nigerians."
"With the current FX problem, which has affected livelihoods and standard of living, any further increases in petrol prices might lead to something else. NNPC remains the sole importer of the product and has not spoken of any impending price hike, " he said.
"NNPC Depots Are Dry": Marketers speak on a slight increase in petrol price adjustments
Legit.ng reported IPMAN revealed that oil marketers could not lift products from the Nigerian National Petroleum Limited (NNPC), leading to scarcity in parts of the country.
The association said that despite NNPC not increasing its prices, marketers no longer have access to the oil company’s portal as it has stopped letting them load via the portal.
Speaking in Abuja, IPMAN's national spokesperson, Chinedu Ukadike, said private depots with products are already exploiting the situation and increasing their prices due to their inability to get products.
Source: Legit.ng
