Filling Stations Fix Pump Prices Amid Pricing Confusion
Oil marketers across the country have started fixing their own pump price for petrol over silent of the Petroleum Products Pricing Regulatory Agency (PPPRA).
According to Tunji Oyebanji, the Chairman, Major Oil Marketers Association of Nigeria, and Managing Director/Chief Executive Officer, 11 Plc, certain members of the association had to fix their pump price between N148-N148.80 per litre.
He said oil marketers are interpreting PPPRA silence as ‘a go ahead’ to adjust price according to the recent increase in ex-depot price.
“There is a need for some clarity. If we are to fix the price of the product, we should be told so. There is a lot of confusion and people are not clear as to the direction. All we have is silence,” he added.
Earlier this week, the PPPRA increased ex-depot price by N6 to N138.62/litre in line with the latest deregulation plan to allow market forces dictate the nation’s pump price and finally put an end to fuel subsidy that over the years has enriched few people at the expense of national growth and development.
However, the Nigeria Union of Petroleum and Natural Gas Workers and the Petroleum and Natural Gas Senior Staff Association of Nigeria have voiced their opposition to the deregulation of the downstream petroleum sector when the country is still depending on importation for refined products.
Since the PPPRA announced a new price band of N140.80 to N143.80 per litre in the month of July, it has remained silent in August despite raising the ex-depot price on Monday.
Forcing filling stations to start fixing their pump prices. For instance, Conoil and Total filling stations opposite the headquarters of the NNPC increased their petrol prices to N148.7 per litre and N148.8 per litre, respectively.
While the Independent Petroleum Marketers Association of Nigeria, South West chapter directed all members to increase the pump price of petrol to N150 per litre.
Experts have attributed the whole confusion to poorly planned deregulation strategy. According to Mr Afolabi Olawale, the General Secretary, NUPENG, any deregulation based on the importation of refined products is not going to ease the burden of Nigerians.
He said, “Our position is that we don’t support any form of deregulation that is based on importation. We support deregulation that is based on local refining of products.
“If we are refining in the country, a lot of costs will be taken away and Nigerians will be able to benefit. But as long as we are not refining, Nigerians will keep experiencing an increase in fuel prices if crude oil price continues to rise.
“Nigerians are suffering; the country is in a dire situation, considering the impact of the COVID-19 pandemic. Things are hard, and we add a higher cost of transportation to it; it is going to be a very terrible period for Nigerians.”
