The Independent Marketers Association of Nigeria (IPMAN) has linked the latest upward review of petrol pump price by oil marketers nationwide to the recent increase in crude oil prices at the international market and other domestic fiscal and monetary policy factors.
The association’s National Operations Controller, Mr. Mike Osatuyi, who was quoted as making this clarification on Tuesday said that while Abuja marketers those in other cities may be selling at N640 per litre, motorists in locations in the very far Northern zones like Sokoto may be buying at a little higher price due to distribution costs associated with moving fuel to those locations.
Osatuyi recalled that he had earlier projected that from the third week of July 2023, when fuel importers would begin to take delivery of new imports, fuel pump prices could increase as now being witnessed nationwide.
According to him, the recent increase in crude oil prices at the international market to over $80 per barrel is largely responsible for the upward adjustment of fuel pump prices by marketers.
Another factor the IPMAN chief said was responsible for the fuel pump jack up is the depreciating exchange value of the Naira, which on Monday traded at N795.28/$1 at the official Investor and Exporters (I&E) window compared to N820/$1 it closed at the parallel market.
A cab driver in Abuja, Mr Adebayo Azeze, who bought fuel at one of the independent marketers stations at N640/litre lamented that sudden hike, even when he bought fuel at the same station at N540 per litre a day earlier
Available data on the global crude oil price showed that on Tuesday, Brent crude futures steadied near $79 per barrel amid signs of tightening US oil supplies, indicating a loss of nearly 2% in the previous session as weaker Chinese economic growth raised concerns about demand in the world’s top crude importer.
