Real reason for latest fuel price increase in Nigeria – IPMAN, PETROAN

The Independent Petroleum Marketers Association of Nigeria, IPMAN and the Petroleum Products Retail Outlets Owners Association of Nigeria, PETROAN, have revealed the reasons for the latest fuel price hike in Nigeria.

The national presidents of IPMAN and PETROAN, Abubakar Maigandi and Billy Gillis-Harry, respectively, blamed the rising fuel prices on the escalating conflict between the United States and Iran and the pricing of petroleum products by suppliers.

DAILY POST reports that fuel pump prices have increased to between N1,310 and N1,345 per litre from between N1,210 and N1,275 per litre in less than two weeks.

Reacting, Maigandi said the ongoing conflict was the major reason for the latest increase in petrol prices.

Recommended

Maigandi explained that fluctuations in global oil prices could cause petrol prices in Nigeria to rise or fall.

“The fuel will sometimes go up and down due to the conflict in Iran and the United States,” he told DAILY POST.

On his part, Gillis-Harry said the reality was that the amount of petroleum products retailers buy from suppliers has a direct impact on their prices.

He, however, blamed petroleum products suppliers for the latest fuel price hike.

“The reality is that once we buy petroleum products at a certain price from the source of supply, it will affect the prices at the retail outlets. So, regardless of the crude oil price coming down, if we are buying, we will not buy products at N1,500 and sell at N1,499 per litre.

“If we buy 1,500 per litre, we must still try to make a minimal markup to be able to pay for the cost of finance, cost of services, cost of logistics, cost of overhead and all of that. So, it is not the doing of the retail outlets. Petroleum members are only going to be selling exactly how they buy.

“So, we don’t buy products and then come and put prices that are not realistic. Our prices are always realistic because we are following a process that gives the Nigerian market or the Nigerian person the opportunity to be better served by petroleum. So, that is what is on the issue.

“It is not from petroleum retailers. The issue is from the supplier,” he told DAILY POST.

You may like