Marketers Adjust Petrol Prices as Cost of Truck of Fuel Rises, Scarcity Bites Harder
- Independent Petroleum Marketers Association of Nigeria (IPMAN) has said that the cost of buying a truck petrol has risen
- IPMAN’s Chairman, Ore Zone, Shina Amoo, said the cost of a truck of fuel increased from N9.6 million to between N34 million and N36 million
- He disclosed that the marketers no longer buy the product from NNPC but from private depots at high costs
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 disclosed that the cost of buying 45,000 litres of a truck of petrol has increased from N9.6 million to N34 million and N36 million at private depots
The Chairman of IPMAN, NNPC Depot, Ore Western Zone, Shina Amoo, disclosed this on Wednesday, August 14, 2024, saying that the cost has also increased to N26 million NNPC depots.
Source: UGC
Marketers blame FX volatility for high petrol cost
Amoo attributed the price increase to removing the petrol subsidy, deregulation, and foreign exchange volatility.
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He stated that banks charge them between 36% and 37% interest rates annually.
According to Amoo, these challenges have skyrocketed their costs and made the business environment very harsh.
New Telegraph reports that marketers can no longer access petroleum products from the NNPC and have now been forced to patronise private depots at high costs.
Marketers adjust petrol prices
Amoo disclosed that due to the high cost of buying the product, they have adjusted their pump prices to N800 and N850 per litre in some states, while NNPC Retail stations sell between N568 and N580 per litre.
He added that the development has made it challenging for independent marketers to compete with NNPC retail outlets.
The IPMAN official added that the scarcity of petrol in some places is due to inadequate supplies, alleging that NNPC prefers its retail outlets over independent marketers.
Amoo said:
“There is no adequate loading. Even NNPC, which is the importer of the product, if they have 20 stations in your city, you will discover that only a few of them will be selling.”
This development comes amid the postponement of petrol production from the Dangote and Port Harcourt refineries, which both fixed August as the commencement date for PMS supply.
A previous report by Legit.ng states that about eight Nigerian refineries were billed to begin production this August but now face crude oil supply challenges.
Another Nigerian refinery postpones petrol production
Legit.ng earlier reported that the Nigerian National Petroleum Company Limited (NNPCL) has shelved the date for the much-awaited launch of the Port Harcourt Refinery for the sixth time.
The delay raises concerns about Nigeria’s energy infrastructure and the reliability of refining capabilities.
The refinery was initially slated to commence production in 2021 but has faced several delays, which have been attributed to various technical, financial and logistical issues.
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Source: Legit.ng
