Marketers Sell Petrol at New Prices as Depot Costs Rise to N770 Per Litre

• The Independent Petroleum Marketers Association of Nigeria (IPMAN) has disclosed that the high cost of petrol is due to an increase in depot costs
• The marketers say that private depot owners have hiked the cost of petrol to N770 per litre, which has affected pump prices
• Per the oil marketers, the cost of freighting the product across the country has also risen, leading to a rise in pump prices

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has said that private depot owners have hiked the cost of petrol to N770 per litre.

IPMAN’s national president, Abubakar Maigandi, disclosed this, stating that depot owners are complaining that the cost of freighting cargo at sea has risen, affecting prices.

Read also

"I bought 3 litres": Nigerian lady shares amount she bought fuel on black market, cries out

Depot owners report an increase in landing costs

Maigandi said the development has impacted petrol prices nationwide despite its availability.

The IPMAN president said the cost component has led to an upward adjustment in petrol prices, which has affected pump prices.

According to him, the cost of freighting the product in Lagos is about N30 or N35 per litre, stressing that the aggregate cost of petrol in Lagos is around N800 per litre.

Marketers move to recoup freight costs

The Nation reports that Maigandi said those lifting petrol from Kebbi State pay as much as N70 per litre in freight costs, leading to petrol selling for as much as N900 and N1,000 per litre in Kebbi.

He said:

“It is a little bit available now because there is no queue. But the only thing is the cost of the private depots. They sell it at N770/litre.

Read also

In Benin, tensions soar over cost of living

“They are complaining about the transportation of their cargoes from the high seas, so they increased the price.

“At that rate, the pump price depends on the distance. Where you will spend N30 like in Lagos, if you add N770 plus N30, it is N800.

He said petrol could only sell for less when Dangote and other refineries across Nigeria began to produce it. 

Two Nigerian refineries set to commence work

The development comes as the Committee on Petroleum (Downstream) said the Port Harcourt and Warri refineries will become functional before 2024, Legit.ng reported.

The chairman of the committee, Ifeanyi Ubah, said that two Nigeria refineries would become fully operational this year.

Ubah said the Port Harcourt and Warri refineries are currently undergoing turnaround maintenance and will function on the set dates.

This comes as marketers said it will take about two weeks for normalcy to return to the pumps.

Read also

“For your own good”: Reno Omokri explains benefits of 0.5% cybersecurity levy on bank transactions

The senator said plans have already begun to achieve the set target, adding that the Kaduna Refinery would also become functional before the end of 2025.

He said completing the two facilities and supply from the Dangote Refinery would allow Nigeria to meet its fuel consumption needs.

Dangote refinery set date to begin petrol production

Meanwhile, the 650,000 barrels per day Dangote refinery has shifted the date for petrol production from May as earlier announced.

According to reports, the delay was caused by the installation of a residue fluid catalytic cracking unit to boost the facility's sustainable refining of petrol.

The Dangote refinery has already started distributing diesel and aviation fuel to marketers, leading to a crash in the price of the products.

According to the reports, the facility is scheduled to begin supplying petrol to the domestic market in May to reduce Nigeria’s dependence on imported petroleum products.

Read also

Cooking gas price has dropped: Nigerian man shares how much he was charged at station, people react

Oil marketers adjust petrol pump prices

Legit.ng reported earlier that filling stations across Nigeria have adjusted their pump prices following the scarcity of petrol, which has entered the second week.

Legit.ng findings show that petrol stations in Lagos, Abuja, Port Harcourt, and Kano have adjusted their prices upwards due to the scarcity.

Most petrol stations selling the product in Lagos adjusted their pump prices to N750 per litre from the N630 they sold the product before the scarcity began.

Proofreading by Kola Muhammed, journalist and copyeditor at Legit.ng

Source: Legit.ng