FUEL PRICE IN NIGERIA / INFLATION OF FUEL PRICE IN NIGERIA/ FUEL PRICE IN NIGERIA NO MORE N145 PER LITRE
The Oil marketers have stood their ground insisting that selling Premium motor spirit other wise known as petrol at N145 per litre is no longer profitable for them. This means that fuel price in Nigeria will have to experience a shift paradigm.
The Chief of Staff to the President, Abba Kyari presided over an exclusive meeting at the Presidential Villa on Tuesday (which graced the presence of top government officials; Maikanti Baru, Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Ibe Kachikwu, Minister of State for Petroleum Resources, and Lawal Daura, Director-General of the Department of State Services DSS).
Dapo Abiodum, the chairman of Depot and Petroleum Marketers Association of Nigeria (DAPMAN) entertained some journalist at the end of the meeting as he addressed the issue of the petrol scarcity as he disclosed some important facts discussed at the meeting.
“Today’s meeting was called at the instance of the Chief of Staff to the President and it was to find out exactly what happened, where we had the problems we had in December with the supply of petrol and how Nigerians were made to go through the pains and suffering.
“A lot of issues were raised and a committee was constituted that will meeting tomorrow under the chairmanship of the Minister of Petroleum to further go into the nitty-gritty and to ensure that these problems do not reoccur again’
He emphasized that marketers did not in any way hoard petrol from the masses in order to increase the fuel price in Nigeria in the festive season. He backed this up by saying that oil marketers are fellow Nigerians and as well business men who wouldn’t make money from hoarding petrol.
He insisted that neither NNPC nor marketers should be blamed for the 2017 Fuel scarcity problem.
“The situation, from our point of view, is that from January to December, the price of crude remained relatively stable. Following the Hurricane Katrina in the month of September, October, crude prices went up and marketers lost the ability to import any sell at N145 per liter.
“Since the price of crude is directly proportional to the refined product, we could not import petrol and sell at N145 anymore. And this business is a partnership between marketers and NNPC. Marketers being in a certain volume and NNPC also brings in a certain volume.”
However he did not stop at this, he also advised the Government on steps to take to terminate further re-occurrence of the situation.
“In the past marketers bring in about 60% while NNPC brings about 35 to 40 percent. But by the month of October marketers completely stopped importing because there no more subsidy so we can’t sell for profit so we have to stop importing.
“So, the burden of importing 100% now fell on NNPC. So you can imagine a situation where NNPC was importing in part and marketers were importing in part and then suddenly NNPC begins to import 100%. Couple with the fact that in the months we called the ember months from October to December the consumption of petrol is highest in the country.
“So, you now have what we call a double warning. NNPC is suddenly finding its importing what they probably didn’t expect in terms of volume and the fact that Nigerians themselves are consuming more volume that they will normally consume in earlier months.
He also re-iterated on the fact that neighboring countries are selling fuel at more that $1 per liter. Of which $1 in Nigeria today is about N360.
“Couple with the fact that the countries that are surrounding us as a nation are all selling fuel at more than $1 per liter. $1 today is about N360. If you go to Cotonou, Ghana, Niger so is is not unlikely that some of our petrol is finding itself across the body to these countries”.
Does this mean that the the fuel price in Nigeria might escalate to about N360?