Latest News: No Plans for Petrol Price Surge in Nigeria, Affirms IPMAN
- The Independent Petroleum Marketers Association of Nigeria (IPMAN) refutes claims of a proposed increase in petrol prices.
- IPMAN’s Southwest zone chairman, Dele Tajudeen, clarifies their stance, stating no rise above the current price.
- Tajudeen insists that the fuel will remain accessible to the public, dismissing fears of an extreme price hike.
The Independent Petroleum Marketers Association of Nigeria (IPMAN), a crucial player in Nigeria’s petroleum market, recently addressed circulating rumors about a possible increase in the pump price of premium motor spirit (PMS), colloquially known as petrol.
The report insinuated a potential hike to N700 per litre. IPMAN vehemently denied these claims, assuring the public that the price of petrol will not exceed its current rate.
Dele Tajudeen, IPMAN Chairman for the Southwest zone, offered his insights during an interview with the News Agency of Nigeria (NAN). He dismissed the price hike rumors, claiming they hold no weight.
“The price of petrol won’t be more than its current rate,” Tajudeen said, emphasizing the unwarranted alarm the rumors have caused among Nigerians.
The chairman also applauded the president’s decision to abolish the subsidy, considering it a misleading scam. According to him, the Petroleum Industry Act (PIA) bill supports this assertion. Tajudeen expressed IPMAN’s complete backing of this initiative, stating it would ultimately serve the public interest.
Assurance to Nigerians
Addressing the apprehension among Nigerians, the chairman advised against panic and urged the people to trust IPMAN’s control over the situation.
“There is no cause for alarm. We are in control, and there’s no such plan [for a price increase],” reassured Tajudeen. He further declared, “Rest assured, petrol’s price won’t exceed its current selling rate.”
He clarified the price ambiguity with the Nigerian National Petroleum Corporation (NNPC) retail limited and independent marketers. He explained that the retail price announced does not bind independent marketers, dismissing the reported price hike as speculative and far from reality.
Addressing Price Deregulation and Differential
In his discussion, Tajudeen elaborated on petrol price deregulation and differentials. He explained how these variables relate to the product’s transportation cost, which varies based on location. The chairman described that transporting products within Lagos would be significantly less expensive than moving them to Ibadan or Ilorin. This disparity in transportation costs, he claimed, results in price differentials.
Current and Future Price Guidance
Dele Tajudeen went on to provide some clarity on the current and potential future pricing of petrol. He emphasized that nobody within the Lagos metropolis should sell petrol for more than N515 to N520 per litre, given the prevailing circumstances.
NNPC, although a significant source, is not the sole supplier for their product. They also procure petrol from private depots. He noted, “We add our margin to whatever price we buy it at and then sell it.”
Tajudeen concluded by setting an expected price range for different regions. He specified that the highest price anywhere should be around N550; in Lagos, N510 per litre, and Ogun state should range between N500 and N520.
Disregard for Speculation
Finally, the chairman urged Nigerians to ignore the speculation surrounding the rumored petrol price hike. He warned against panic buying, assuring that the situation is under control and there is no cause for concern.
In summary, the Independent Petroleum Marketers Association of
Nigeria (IPMAN) has clarified its stance on the circulating rumors of a substantial petrol price hike. The association assures Nigerians that the cost of petrol will not exceed its current rate, dismissing any speculation as baseless and urging against panic buying. The association promises to keep the product accessible and affordable for all, keeping the public interest at the forefront of their operations.