N165/litre fuel: Oil Marketers give conditions to Return to FG’s Approved price

N165/litre fuel: Oil Marketers give conditions to Return to FG’s Approved price

Oil marketers have giving the Federal Government conditions that should be met in order to retain the pump price of Premium Motor Spirit, popularly called petrol, at N165/litre.

The oil marketers insisted that for them to sell at 165/litre, the cost of the commodity must be sold at the approved ex-depot price at various depots, whether private or government-owned, as this would enable filling stations to dispense the product at the regulated N165/litre rate.

They said private depots were dispensing the commodity at higher rates than what was approved by the Federal Government despite the many challenges in the downstream oil sector.

Theconscienceng gathered that they made this known to the Nigerian Midstream and Downstream Petroleum Regulatory Authority in Abuja, a development that made the agency to ask the marketers to report depots that were selling PMS above the approved price.

The approved ex-depot price of petrol is about N148/litre, but retailers say private depot owners sell the commodity above N160/litre.

The General Manager, Corporate Communications Department, NMDPRA, Kimchi Apollo, said in a statement issued in Abuja on Sunday that executives of the South-West Independent Petroleum Marketers Association of Nigeria paid a courtesy visit to the authority where they made their demands known.

In the statement, the Zonal Chairman, IPMAN South-West, Dele Lamidi, said the purpose of the visit was to seek collaboration and support the authority in line with the Petroleum Industry Act 2021.

Lamidi, however, highlighted some of the problems his members were facing such as product sharing, rise in penalties, difficulty in getting tax clearance, and high cost of doing business across the country, among others.

He stated that despite all the challenges the association was facing, it had resolved not to embark on any industrial action as a conflict resolution technique, but pointed out that petrol price would be N165/litre if retailers were able to get it at the approved ex-depot rate.

The IPMAN official was quoted as saying, “As far as we are concerned in the South-West, we have gone beyond the strike. The strike is not the solution to any problem because if there is a strike it affects the masses and our businesses.

“We will work together to ensure free flow of petroleum products and also make sure that products are sold at the government-regulated price if we get them at the normal price.”

The Deputy National President, IPMAN, Zarma Mustapha, had explained that it was unsustainable to sell petrol at N165/litre going by the jump in crude oil prices and crash of the naira against the dollar.

He told our correspondent that many independent oil marketers who were selling at the N165/litre price had closed shop over time because the price was not sustainable and was killing our businesses.

“So with the current dynamics going on in the industry, it is not realistic to sell PMS at N165/litre. I want to tell you one thing, in the whole world there is no place that petrol is being sold at the price we are selling it in Nigeria,” Zarma had stated.

Asked to state the rate at which the private depot owners were selling the product, he replied, “As of today they sell as high as N162 to N163 depending on the private depot.

“Now, tell me, as filling owner, if you buy at this price from the private depots, would you sell at N165/litre amidst all the challenges that are currently besetting the oil sector? So it is not possible to sell at N165/litre. This is the reason for the proposal that the approved price be raised to N180/litre.”

But in the statement from the NMDPRA on Sunday, the authority’s Chief Executive, Farouk Ahmed, asked the marketers to report depots that were selling above the regulated price.

The statement read in part, “He (Farouk) revealed that the authority had received complaints of private petroleum depots selling PMS above the approved price, thereby disrupting the entire value chain, leading to higher pricing in some areas.

“He called on the association to report any depot selling products to its members above the approved ex-depot prices.”

One of the sources with the MOMAN hinted that the meeting with the NMDPRA was about how to resolve product shortages in the country.