Petroleum product marketers in Nigeria have suggested that the pump price of petrol in the country could increase to between N700 and N800 per litre, up from the current range of N580 to N617 per litre. They raised concerns about the return of a regulated petrol pricing regime, citing rising landing costs and a shortage of foreign exchange as factors contributing to the potential price hike.
The Chief Operating Officer of Pinnacle Oil and Gas Limited, Mrs. Adenike Labanjo, pointed out the challenges faced by marketers, emphasizing the imbalance in foreign exchange accessibility favoring the national oil company (NNPC) over private marketers. The high cost of sourcing petrol has led to the closure of 90% of petrol depots nationwide. The cost of buying 10,000 metric tonnes of petrol locally has surged to N7 billion, up from below half that amount last year.
Despite the challenges, the Executive Vice President of Downstream, NNPC Limited, Mr. Adedapo Segun, noted that NNPC is a competitor to private marketers and urged them to rise to the competition. He emphasized NNPC’s role in guaranteeing energy security for the country under the Petroleum Industry Act (PIA).