Why Petrol prices are rising in Nigeria — IPMAN, PETROAN

The Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) have explained the factors behind the latest increase in petrol prices across the country.

The associations attributed the development to rising global crude oil prices linked to the escalating conflict between the United States and Iran, as well as increased prices charged by petroleum product suppliers.

The latest increase has seen petrol prices rise to between N1,310 and N1,345 per litre in some locations, from the previous range of N1,210 to N1,275 per litre within less than two weeks.

National President of IPMAN, Abubakar Maigandi, identified the ongoing US-Iran conflict as a major factor driving fluctuations in global oil prices, which he said ultimately affect petrol prices in Nigeria.

According to him, changes in international crude oil prices could cause domestic petrol prices to rise or decline.

“The fuel will sometimes go up and down due to the conflict in Iran and the United States,” Maigandi said.

However, the National President of PETROAN, Billy Gillis-Harry, shifted the blame to petroleum product suppliers, explaining that the prices retailers pay at the point of purchase directly determine the prices at filling stations.

Gillis-Harry said retailers could not sell products below their purchase price, noting that they also have to account for financing, logistics, services and other operational costs.

He maintained that petrol retailers were merely passing on the cost at which they purchased the products rather than arbitrarily fixing prices.

“It is not from petroleum retailers. The issue is from the supplier,” he said.

IPMAN calls for FG Intervention

Amid the latest price increase, Maigandi also appealed to the Federal Government to intervene in the downstream petroleum sector by brokering an agreement with the Dangote Refinery and other domestic refiners to bring down petrol prices.

He made the call against the backdrop of increased gantry and ex-depot prices by the Dangote Refinery and depot operators, which preceded the latest rise in retail pump prices.

Maigandi urged the Federal Government to work with local refiners to ease the pressure on consumers, stressing that such intervention should not be regarded as a return to fuel subsidy.

“We are appealing to the Federal Government to broker a deal with Dangote Refinery to reduce fuel prices.

“The government should intervene with Nigerian refiners, and this will lead to a reduction in fuel prices. It is different from fuel subsidy. In a situation where there is difficulty, the government should step in,” he said.

The IPMAN president expressed the hope that government intervention and improved engagement with domestic refiners could help stabilise the downstream petroleum market and reduce the burden of rising petrol prices on Nigerians.