The decision regarding the new price of petrol in Nigeria was clarified by the Nigerian National Petroleum Company (NNPC).
The corporation, on Tuesday, July 19, claimed that the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, is directly responsible for petroleum pricing.
The spokesperson for the NNPC, Garba Deen Muhammad, said;
The NNPC no longer approves pump price review. That is the work of the midstream and downstream authority. I have no idea. They are the ones that tell you what price regime the government has approved, not NNPC. NNPC has already exited all that situation. We are operating just like MTN now.
However, yesterday’s unilateral hike in fuel prices from N165 to N179 caused consternation in the downstream sector.
In any event, the majority of independent merchants were defiantly flouting government regulations by charging between N170 and N200 per litre.
Investigations revealed that, depending on the area, many oil merchants still sell at their desired pricing.
The NNPC Limited sold petrol in Lagos for N169 per litre, but big retailers were seen selling it for over N170.
Ukrainian War Affecting Fuel Prices
Speaking, Mr. Olumide Adeosun, the chairman of the Major Oil Marketers Association of Nigeria (MOMAN), said that the ongoing conflict in Ukraine and the restriction on Russian oil had drastically raised operating costs.
According to him, the increasing cost had overstretched the capacity of operators to distribute and market petrol in all parts of the country, saying;
Operational costs have increased significantly due to higher logistics costs locally and internationally (ongoing conflict in Ukraine and consequential sanctions against Russia).
The Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA and NNPC via the Pipelines and Products Marketing Company, PPMC are doing their best in the circumstances. Given the current economics, it is impossible to supply and sell products at the pump at N165 in the light of the above.
IPMAN Says Current Price ‘Unsustainable’
Similarly, the National Operation Controller, Independent Petroleum Marketers Association of Nigeria, IPMAN, Mr. Mike Osatuyi, said it was impossible to sustain the previous N165 per litre regime.
We had tried in the past to sustain supply, but it is no more possible because of rising costs of operations in the downstream sector, especially now that the price of diesel has risen to N800 per litre.