Oil entrepreneurs say petrol will promote for N230 per litre in March

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Oil entrepreneurs, on Sunday, mentioned that Premium Motor Spirit (PMS) in any other case generally known as petrol is to promote for as a lot as N230 per litre in March.

This is coming in opposition to the background of insistence by the Nigerian National Petroleum Corporation (NNPC) that it has no plans to extend the worth of petrol in March.

There has been a reported reappearance of queues at filling stations in some components of Lagos and Abuja as panic shopping for and petrol hoarding happens in some filling stations.

According to a report by New Telegraph, the National Operations Controller, Independent Petroleum Marketers Association of Nigeria (IPMAN), Mike Osatuyi, declared that the entire nation had crossed the bridge and that there was no hiding place for a hike in gas worth.

What the IPMAN high officers are saying

Osatuyi mentioned, “I have just returned from a meeting in Abuja. What I have observed is that many stations have closed down and there are queues in many places in both Lagos and Abuja. Nigeria has crossed the bridge, there is no hiding place, the N1.2 trillion, which was hitherto annual spending on subsidy, will be borne by the market.

“As it is, the prices of crude oil have gone up to $67 per barrel and, with this, the price of PMS will be between N220 per litre and N230 per litre. I was told by someone that the Group Managing Director of NNPC told them that the official price is likely to be N206 per litre.

“As it is now, all the stations that have shut down their gates must have heard information before they took that action. I want us all to wait by tomorrow we will all see clearly what will happen. There have been annual spending of N1.2 trillion on fuel subsidy and now that the subsidy has said to be abolished, that money must come from somewhere.

‘’The money must be coming from somewhere. “NNPC is not an NGO (non-governmental organisation), there is no budgetary provision for subsidy again and instead of wasting it on subsidy, it should be deployed to other sectors,’’ he said.

On what can be done to cushion the negative effects of higher fuel price, Osatuyi said: “This plan to cushion the negative effects of higher fuel price should be the next important thing. The government can do the free conversion of vehicle from fuel to gas. This should be done to help Nigerians who will definitely be affected by this fuel price hike.”

On his half, the IPMAN National Public Relations Officer, Alhaji Suleiman Yakubu, condemned the panic shopping for and return of lengthy queues at some filling stations inside Abuja.

While assuring Nigerians that the traditional provide of petroleum merchandise would quickly be restored with the graduation of loading at numerous depots, Yakubu mentioned the rise within the international worth of crude oil has affected the worth of petrol.

He mentioned, “We wish to guarantee the patrons that authorities and entrepreneurs are doing all the things potential to make sure that the merchandise can be found in each filling station inside just a few days ranging from in the present day (Sunday).’’

What you must know

  • The state oil big, NNPC, had in a press statement on Sunday, assured Nigerians that regardless of the rise within the worth of crude oil, it has no plans to extend the ex-depot worth of petrol within the month of March. This is coming after it gave an identical assurance earlier in February, that it was not going to extend the worth of the product in February.
  • NNPC defined that the choice was to permit ongoing engagements with organized labour and different stakeholders on an appropriate framework that won’t expose the extraordinary Nigerian to any hardship, to be concluded.
  • This uncertainty has led to hoarding of the product by depot house owners and a few retail entrepreneurs, which has led to the return of queues in some filling stations.
  • The Federal Government had in March 2020, introduced the removing of gas subsidy and full deregulation of the downstream sector of the oil trade, which can permit market forces to find out the worth of the product.

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