Oil marketers in Nigeria under the aegis of the Independent Petroleum Marketers Association of Nigeria (IPMAN) have decried the ex-depot price of Premium Motor Spirit (PMS) known as petrol which increased by 110 percent in four months.
According to the data report from the industry, in October, the ex-depot price read N148 per litre while in February, it recorded N312 per litre.
Investors King gathered that the stipulated price by the Nigerian National Petroleum Company Limited (NNPCL) for the depots to sell PMS to oil marketers is N148 per litre but was recently increased to N172 per litre.
In the report issued by the Major Oil Marketers Association of Nigeria, the least average ex-depot price of petrol within the four months was N303 per litre.
It explained that the lowest price of N303 per litre was seen at Apapa depots, while petrol was sold at N305 per litre in Ibafon depots. However, the highest price recorded within the timeframe was at Satellite depot for N312 per litre.
The price increase has been attributed to fuel scarcity which has made pump prices rise from N179/N180 per litre to as high as N500/litre in some places.
According to the Depots and Petroleum Products Marketers Association of Nigeria (DAPPMAN), the price hike is as a result of rising foreign exchange rate, illegal levies, high cost of daughter vessels amongst others.
Oil Marketers have also lamented the high cost of transporting petroleum products from the depots to their stations as well as high running costs.
The IPMAN Chairman, Satellite Depot, Akin Akinrinade charged the Federal Government on the need to jerk up the rehabilitation of the nation’s refineries for massive local production.
“The lasting solution is for the refineries to start functioning and we begin local refining,” he said.
Also speaking on the subject, Operations Controller, IPMAN Mike Osatuyi, called for the removal of fuel subsidy and deregulation in the industry to solve the fuel scarcity challenge.
“The permanent solution is to deregulate and remove subsidies. Allow the market to be a free market where marketers other than the NNPC will be able to bring in products. Since the government said the subsidy will be removed in June, let’s wait and see, but until then, we have to manage,” Osatuyi stated.