Marketers announce change in petrol price as pump price increases again

• Marketers adjusted their pump prices in reaction to rising foreign exchange rates and increased overhead costs
• The new prices for Conoil, TotalEnergies, MRS, and NNPC Retail Limited are N619 per litre
• Only NNPC Retail Limited has maintained its previous retail rate of N568 per litre despite the lineups that loop around its stations

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

Over the weekend, oil marketers changed their pump prices in response to growing foreign exchange rates and higher administrative expenses.

Some major marketers have increased their fees, citing the tough business realities as the reason for the change. Photo Credit: Maskot
Source: Getty Images

Independent oil marketers have raised their rates to as much as N770 per liter, while major oil marketers, including 11 Plc (formerly Mobil Oil Nigeria Plc), Conoil, TotalEnergies, MRS, and NNPC Retail Limited, have set their new pricing at N619 per liter.

New prices emerge

With long lines winding around their stations, Daily Sun reported that only NNPC Retail Limited kept its former retail pricing of N568 per litre.

However, some significant marketers have raised their rates, claiming that this reflects the harsh realities of the business.

The unexpected spike in fuel prices surprised many drivers, who expressed concern about the financial burden this would have on their budgets. Filling station manager, KC stated that he had to implement the management directive regarding the price increase.

The Major Oil Marketers Association of Nigeria (MEMAN) Executive Secretary, Clement Isong, clarified that the increase was unavoidable due to the escalating expenses associated with foreign exchange rates.

Other related costs have increased while the cost of purchasing gasoline from the sole importer, NNPC Trading, has been constant. Ship-to-ship transfers, for instance, now cost $70,000 a day instead of the previous $40,000 per day.

Furthermore, because of the current exchange rate of N1,560 to $1, fees paid to organisations like the Nigerian Ports Authority (NPA) and the Nigerian Maritime Administration and Safety Agency (NIMASA) have skyrocketed.

“The reason some major marketers are still selling at N619 per litre is that they receive direct deliveries into their tanks from NNPC vessels, which is becoming increasingly rare. The entire downstream value chain depends on the dollar, and as the dollar strengthens, petrol prices rise. Conversely, if the dollar weakens, petrol prices should drop.”

Fuel shortage across country

The persistent fuel shortage in several areas of the nation, particularly in Abuja and Lagos, is also connected to the most recent price increases. Fuel prices have increased from N630 to N720 per litre ex-depot due to private depot owners, making it more difficult for independent marketers to buy the product.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) National Vice President, Hammed Fashola, said that a lack of fuel was the reaso why many filling stations remained closed. As the only importer, he pleaded with NNPC to explain the situation to Nigerians.

Fashola explained,

“Stations are shut because they do not have fuel to sell. The NNPC, being the sole importer, is in the best position to tell us what is happening. Currently, independent marketers cannot afford the prices set by private depots, which range from N715 to N720 per liter. Including transportation and other depot expenses, the cost becomes prohibitive for marketers."

The National President of IPMAN, Abubakar Maigandi, outlined other difficulties, including bad road conditions and rising ex-depot costs—which have risen to N715 per liter from earlier, cheaper pricing. These elements have raised the price of gas at the pump along with extra margins from marketers.

In conclusion, rising overhead expenses and a variable currency rate are the main causes of the recent increases in petrol prices in Nigeria. The impact on consumers and the whole economy is still substantial as stakeholders work through these difficulties.

Dangote speaks on crashing fuel price

Legit.ng reported that the President of the Dangote Group, Aliko Dangote, has said the company is expanding the storage capacity of its refinery by 600 million litres

Speaking on Wednesday in Nassau, Bahamas, Dangote addressed the Afreximbank Annual Meetings and AfriCaribbean Trade & Investment Forum.

While the refined petroleum product storage capacity of the Dangote Petrochemical Refinery is currently 4.78 billion litres, he claimed that the development would raise the facility's storage capacity to 5.3 billion litres.

Source: Legit.ng