AKINWALE ABOLUWADE
Petroleum marketers have attributed the recent surge in petrol prices to supply constraints and production glitches at the Dangote Petroleum Refinery, which have intensified pressure in the downstream oil market.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) stated this through its National Publicity Secretary, Chinedu Ukadike, in an interview.
Ukadike disclosed that members of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) were finalising arrangements to begin petrol importation as part of efforts to stabilise retail prices.
He explained that petrol prices would soon drop as competition returns to the market with the entry of additional suppliers.
“Yes, petrol prices are still going to come down because I know that some marketers, especially DAPPMAN members, have applied and are going to import petrol products.
“If their prices are cheaper than Dangote’s, we will have no choice but to patronise them. The essence of this market is that wherever it is cheaper, we will buy. Prices will definitely come down once there is competition for the market,” Ukadike said.
Petrol prices have risen from about N865 to around N950 per litre.
Currently, petrol sells between N920 and N955 per litre in many retail outlets, while some stations in Abuja, Sokoto, and Lagos charge as high as N1,000 per litre, depending on location and brand.
This comes at a time when Nigerians were expecting petrol prices to drop to N841/litre, as earlier recommended by the Dangote Refinery.
A market survey conducted in parts of Abuja revealed that petrol sold for N955 per litre at NNPC outlets in Gwarinpa and Lugbe, while prices stood at N928 per litre at some NNPC stations in Lagos.
Motorists purchased the product at prices ranging from N900 to N1,000 per litre, amid reports of long queues and panic buying in parts of Edo, Rivers, Oyo, and Gombe states.
The IPMAN President, Abubakar Shettima, blamed depot owners for the sudden surge in petrol prices, alleging that they increased their prices after discovering that the Dangote Refinery had stopped fuel loading for some days.
NNPC spokesperson Andy Odeh explained that the company adjusted its pump prices, like other retail outlets, due to higher depot rates.
“The ex-depot prices have gone up. You know all filling stations are retailers. So, when the ex-depot price goes up, retailers adjust accordingly. That’s what has happened, and it’s the same across all retailers,” Odeh said.
It was gathered that the Dangote Refinery recently suspended petrol sales to marketers, causing supply tightness.
The refinery has yet to respond to enquiries seeking clarification on the development. However, sources suggested that the situation might be due to ongoing maintenance or issues arising from the recent mass sack of engineers at the facility.
Shettima added that DAPPMAN members hiked fuel prices following the suspension of loading at the 650,000 barrels-per-day refinery.
“These DAPPMAN people are the only ones selling the product now. But probably Dangote will start tomorrow (today). Once Dangote resumes sales, prices will come down.
“You may see their trucks on the road, but they’re not enough. Marketers still have to go there to load. And immediately these DAPPMAN people saw that Dangote was not loading, they increased their ex-depot prices.
“That’s what is happening. But I know these things are temporary. Very soon, they will ease off,” Shettima said.
