Marketers Predict Petrol Price to Reach ₦‎700/Litre in July

Oil marketers have forecasted that the price of petrol at the pump could surpass N700 per litre in Northern Nigeria starting in July.

Mike Osatuyi, the National Controller Operations of the Independent Petroleum Marketers Association of Nigeria, stated that prices in the north could rise above N700 once independent marketers commence importing products from July.

According to him, residents in the northern states might have to pay as much as N700 or higher per litre, while those outside Lagos should expect a price of around N610. In Lagos, residents are likely to pay approximately N600 per litre.

Osatuyi explained, “Based on the exchange rate, the current crude price at the international market, and the landing cost, I anticipate prices around N600 and above. Those in Lagos will pay around N600, those outside Lagos around N600 plus, while those in the north would be paying N700 and above.”

The downstream sector is currently awaiting fresh petroleum products as the Nigerian Midstream and Downstream Petroleum Regulatory Authority continues to license operators interested in the importation business.

Olufemi Adewole, the Executive Secretary of the Depot and Petroleum Products Marketers Association of Nigeria, mentioned that the NMDPRA is presently licensing more importers. He stated that arrangements are in progress for the arrival of new products in July, and the prices will depend on market fundamentals.

Adewole raised the question, “Where do countries like Ghana, Benin, and Cameroun get their products from? Isn’t it from Nigeria?” He made reference to the smuggling of products from Nigeria to neighboring countries.

“The prices of products will depend on market fundamentals, and currently, the Nigeria Customs Service is causing delays for some AGO (diesel) vessels due to the 7.5 percent VAT.

“Additionally, any costs incurred by marketers will be added to the landing cost and ultimately affect the pump price. Marketers will also include a profit margin because they need to make a profit,” he added.

Tunji Oyebanji, a former chairman of the Major Oil Marketers Association of Nigeria and CEO/Chairman of 11 Plc, stated during a conversation on Monday that consumers should expect new pump prices similar to diesel prices and those observed in neighboring African countries that import petrol.