Petrol prices likely to remain high, says former IPMAN chairman

By Tina Amanda

Former Chairman of the Independent Petroleum Marketers Association of Nigeria (IPMAN) in Rivers State, Dr. Joseph Obele, has warned that petrol prices may remain high if marketers continue to source fuel from third parties at ₦980 per liter.

Obele made this statement in response to the recent surge in petrol pump prices, which have risen to ₦1,300 and above per liter.

He attributed the hike to NNPC’s importation debt, which has led to directives for major marketers and NNPC retail outlets to increase their pump prices.

“Among the three off-takers of NNPC, which are Major Marketers, Independent Marketers, and NNPC Retail Marketers, the least likely to make an arbitrary price increment is NNPC Retail Marketers. It is Practically impossible for NNPC Retail Marketers to adjust prices upward without authorization from the apex of NNPC.

“On like independent marketers or major, they can likely adjust upward arbitrarily because they are not controlled by a Corporate organization, but rather an association in which membership is not compulsory.

“The upward review experienced at all NNPC Retail filling stations on Tuesday 3 September 2024, was a clear indication of an unannounced new price regime for PMS.

“The recent hike in petrol prices is coming from the high importation cost of buying PMS from the international market.

“Following the unbearable cost of buying PMS from the international market which is now almost #1300 per litre.

“Arising from NNPC Importation debt, NNPC Limited then gave an upward review to all NNPC Retail outlets on Tuesday 3, 2024.

“The price of petrol might remain high if independent marketers continue to buy petrol from third parties at ₦980 per liter. NNPC Limited has not sold petrol directly to independent marketers for the past three months as the portal for independent marketers is shut down until this hour”.

Obele attributed NNPC’s denial of the PMS pump price increase to pressures coming from the Labour Union and major oil stakeholders.

“The NNPC’s subsequent denial of this directive was likely due to pressure from organized labor, NUPENG, IPMAN, and PETROAN emergency meeting evening at Abujua, which threatened to protest if the new prices were not reversed.

“There was a critical Stakeholders meeting ongoing at Abuja, in view of finding a possible solution because Nigerians can not bear any further hardship.

“Any further increment of PMS will affect the worrisome inflation index which will definitely result to price increment on all commodities in the market.

“I join Nigerians by calling on NNPC to step down any planned increment”.