Petroleum marketers speak on fuel price in Nigeria, NNPCL's final decision

Independent Petroleum Marketers Association of Nigeria (IPMAN) has again reiterated that there is no plan to increase the cost of Premium Motor Spirit (PMS), popularly called petrol.

In a statement on Monday, January 8, 2023, the marketers said the Nigerian National Petroleum Company Limited (NNPCL) remains the sole importer of the commodity and can determine the pump price alone.

The marketers also noted that NNPC can absorb under-recovery on fuel prices due to its involvement in crude oil sales.

Under-recovery is a term used to denote the notional losses that oil companies incur due to the difference between actual prices and what the markets pay.

No hike in fuel price

In the statement signed by Ukadike Chinedu, its national public relations officer, IPMAN noted that other licenced marketers have stopped importing petrol because of their inability to shoulder such under-recovery.

IPMAN urged the public not to worry over the cost of petrol as NNPCL can manage current fuel prices, Punch reports.

His message reads: “The National Executive Committee of IPMAN, under the leadership of Alhaji Debo Ahmed, has become aware of the current concerns surrounding misinformation spread by certain news media outlets.

"This misinformation falsely suggests that IPMAN is considering a potential hike in the PMS pump price.

“We were merely sharing our opinion with the populace on the need for the government to quicken the rehabilitation of the nation’s four refineries to lessen the pressure on the importation of petroleum products into the country.

“NNPC remains the sole importer of PMS despite the full deregulation of the product because they are capable of under-recovery from sales of crude oil which is not possible for other operators in the downstream sector.”

“We therefore appeal to the general public to shun panic buying as NNPC have the capacity to manage the price of PMS and have assured us of enough quantity in the system.

“We remain partners in the renewed hope agenda of the present administration.”

Meanwhile, in another report, the NNPCL secured a $3 billion loan from AfreximBank.

The new loan is expected to help strengthen the naira against the dollar and ultimately reduce the cost of petrol in the country.