Fuel marketers across the country adjusted their pump prices on Thursday to between N 158 and N 162 per litre of petrol , saying a further increase in global crude oil prices would push the pump price of petrol higher .
Petrol prices have increased for three straight months, rising from N 121. 50 –N 123. 50 per litre in June to N 140. 80 -N 143. 80 in July, N 148- N 150 in August and N 158- N 162 in September .
The Petroleum Products Marketing Company , a subsidiary of the Nigerian National Petroleum Corporation had , on Wednesday , increased the ex - depot price of Premium Motor Spirit ( petrol) to N 151. 56 per litre from N 138. 62 per litre but later reduced it to N 147. 67 .
The ex - depot price is the price at which the product is sold to marketers at the depots .
When the collapse of global crude oil prices triggered the reduction of the pump price of petrol from N 145 per litre to N 125 in March , the Petroleum Products Pricing Regulatory Agency said it would advise the NNPC and oil marketing companies on the monthly “ guiding retail price ” at which the product shall be sold across the country .
The Minister of State Petroleum Resources , Timipre Sylva , in a statement on May 15 , said deregulation was approved on March 19 this year .
“ But as you all know , PMS and other petroleum products are very strategic commodities , so you cannot allow the prices of these commodities to be determined wholly by the marketers , ” he added .
In June , the Executive Secretary , PPPRA, Abdulkadir Saidu , said , “ For the avoidance of doubt , it is instructive to state that no private individual or group has the mandate to fix prices of petroleum products , however , the statutory regulatory body is saddled with the responsibility of advising guiding prices . ”
But the PPPRA failed to issue any guiding prices in August and September and has remained silent since then , despite repeated calls and messages sent to the agency by one of our correspondents on the issue .
The spokesperson of the agency , Kimchi Apollo, however , told our correspondent on Thursday that he would get information on the development and revert . He had yet to do so as of the time of filing this report .
The National Operations Controller , Independent Petroleum Marketers Association of Nigeria, Mr Mike Osatuyi , told one of our correspondents that the increase in petrol pump prices was a reflection of the global oil prices .
“ In July, the crude oil price was around $ 43 per barrel . But rose to about $ 44 - $ 45 in August . Last Monday , it increased to $ 46 . If the crude oil price falls to $ 40 , petrol prices will come down . But if it goes up to $ 50 , we should be expecting petrol price to rise to about N 163 per litre if the exchange rate remains the same, ” he said .
Osatuyi stressed the need for government to create a level playing field by allowing marketers to also have access to foreign exchange at the official rate like the NNPC to enable them to import products .
The Chairman , Major Oil Marketers Association of Nigeria, Mr Adetunji Oyebanji , said earlier on Thursday that pump prices would have to be adjusted to reflect realities of the increase of ex - depot prices by PPMC .
“ However , the magnitude of the increase, timing and location is a decision left to each company . Consistent with global best practices , MOMAN does not dictate prices to its members as this would be anti -competition in a fully deregulated market .
“ We welcome government ’ s action in allowing the market to determine prices , as we believe it will prevent the return of subsidies , while allowing operators the opportunity to recover their costs . This will , in the long run , encourage investment and create jobs , ” he added
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