Marketers panic over potential increase in fuel price
It is not an auspicious time for petroleum marketers as there is significant evidence to suggest a possible increase in fuel price when an announcement is made sometime later this month.
Daily Times gathered that the fuel price could increase to as high as N150 per litre, sequel to an increase in the price of crude oil in the international market.
While it remains uncertain how high the increment will be, an announcement is expected very soon following a meeting by the committee set up to evaluate the best possible course of action at this time.
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National President, Petroleum Products Retail Outlets Owners Association of Nigeria, Mr Billy Gillis-Harry said that marketers have already begun stocking up in anticipation of this increment
“There is panic buying and it is because of the worry that prices will be reviewed either downwards or upwards. But because of the marginal rise in crude oil prices, the calculation is that petrol price could go up”
“That is the situation and this was why we requested that there should be a stakeholders’ engagement every month or quarterly so that we can be sure of what to expect” he said
He further noted that marketers had written to the petroleum minister, the PPPRA, the Nigerian National Petroleum Corporation and the Pipelines and Products Marketing Company, stating the need to involve marketers on issues revolving around fixing of pump price
“From March to July, there was no clear-cut permutation or formula that we as marketers can affirm that this is the reason why the price changed from this to that. We don’t have it.
“And we’ve kept asking what the parameters are because the information we have is that marketers margin is going to increase. There was no such increase in margin; rather, there was depletion of our buying capital” he added.
The Executive Secretary, PPPRA, Abdulkadir Saidu, held that existing framework on regulation would make that a difficult implementation
He said, “The Central Bank of Nigeria regulates the banks and other financial sector operators, the National Communication Commission regulates telecommunications, etc, and the same exists for operators in Nigeria’s downstream petroleum sector.
“To this end, it is not out of place for the agency (PPPRA) to provide a guiding price band with the aim to protect consumers against price gouging.
“It is important to also state that there is nowhere in the world that deregulation means total lack of control, supervision or oversight.”
The expected increase in pump price sometime later this month will not be the first time we’re experiencing a back and forth spike in the price of petroleum products, particularly due to the frequent fluctuation of crude oil price in the international market due to the economic implications of the coronavirus pandemic in recent months.
While the marketers continue to panic ahead of a possible increment, the spillover effect is expected to have a significant impact on the generality of the Nigerian people.
