Barely two days after electricity tariff was increased by about 300 per cent, oil marketers yesterday fixed pump price for Premium Motor Spirit (PMS), popularly called petrol, at N162 per litre.

The marketers fixed the new price following Federal government’s announcement that the product would now be sold to marketers at the depot price of N151.56.

Marketers’ new price announcement came as Petroleum Products Pricing Regulatory Agency - the agency expected to modulate the price monthly, failed to announce the new retail price.

They claimed the absence of PPPRA’s template created confusion coupled with the issuance of two conflicting statements by a subsidiary of NNPC, Petroleum Products Marketing Company (PPMC). The two statements fixing two ex-depot prices: N147.67 and N151.56.

PPMC, in the first statement dated September 2, 2020, with reference number PPMC/IB/LS/020, notified stakeholders that the price had increased to N151.56 per litre.

The same agency, in the second statement, with reference number PPMC/MOD/SALES/346, put ex-depot price at N147.67 for petrol.

With an ex-depot price of N151.56, some marketers noted that additional charges for distribution margin, transporter allowance, retailer margin, bridging fund, marine transport as well as administration charges would push the retail price up to an average of N162 per litre, based on market fundamentals.

As of the time of filing this report, Independent Petroleum Marketers Association of Nigeria (IPMAN) was uncertain of the price as the association’s Vice President, Mr Abubakar Shettima, said the situation was being weighed.

Southwest Zonal Chairman of IPMAN, Mr Dele Tajudeen, however, said the association had directed its members to dispense the product at N162 per litre.

Tajudeen alleged that NNPC had been selling to their retail outlets at different prices, bringing disparity in the system, especially for other marketers.

“This pits us against the masses. Government has been insensitive to people’s plight”, he said.

The Guardian