Major oil traders say retail price of N165/litre for petrol no longer realistic

Major oil distributors under the Major Oil Marketers Association of Nigeria (MOMAN) said the fixed retail price of N165 per liter for Premium Motor Spirit (PMS), also known as petrol, n is more realistic.

The statement comes at a time when fuel shortages have persisted for several weeks in major cities across the country, including Abuja, with different stakeholders in the oil sector blaming each other.

This was announced on Wednesday by MOMAN Chairman, Mr. Olumide Adeosun, during a Virtual Consumer Protection Workshop for Petroleum Marketers hosted by the Federal Competition and Consumer Protection Commission (FCCPC). .

Adeosun, which was reacting to the continuing shortage of fuel across the country, attributed the situation to the ongoing conflict between Russia and Ukraine which had disrupted global energy supplies.

Difficulty enforcing government-approved price

The MOMAN chairman likened the current situation to the era of the COVID-19 pandemic, with some countries scrambling to stop exporting oil in favor of their own domestic energy stocks.

The news continues after this announcement

He insisted that it would be difficult to apply any kind of price control mechanism on oil traders who were forced to adjust their prices slightly to reflect the current cost of buying the product from the depots.

MOMAN proposes phased gasoline deregulation

Adeosun, who is also the CEO of Ardova Plc, advised gradual deregulation of gasoline by the federal government to reduce the shock to consumers as a way forward to address the current challenges.

The news continues after this announcement

  • He said gradual price deregulation should be followed by targeted palliatives in the areas of transport and agricultural subsidies to the public to facilitate implementation.
  • He said the huge sum spent on petrol subsidies over the years would have been deployed in other critical areas that could have lessened the impact of the current energy crisis on Nigerians.
  • Adeosun sympathized with the Nigerians and the Federal Government who had borne the huge cost of the subsidies, adding that the government was working diligently to mitigate the effects of the situation on the economy.
  • He said that as the country moves towards full deregulation of the downstream petroleum sector, MOMAN will continue to work with the FCCPC to ensure consumer rights are protected.

What you should know

  • Recall that in a related development, the Independent Petroleum Marketers Association of Nigeria (IPMAN), a few days ago, attributed the persistent fuel shortage in Lagos and its environs to the inability of the Pipelines and Product Marketing Company (PPMC ) to supply products to the Ejigbo depot.
  • There had been reports that private depot owners were still selling petrol at around N162 per liter to oil traders against the approved N148.17 per liter with some retail petrol stations, especially those owned by independent traders selling between N180 per liter and N195 per liter depending on location.
  • Meanwhile, gasoline shortages have persisted in different parts of Lagos and surrounding areas with many gas stations closed and long queues of vehicles at the few gas stations that are selling.