The National Operations Controller of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Mike Osatuyi, says the only realistic pump price of petrol is between N200 and N210 per litre.
Osatuyi said the Federal Government’s pricing template, which fixed the pump price at N169 per litre of petrol, is grossly unrealistic when the fuel’s landing cost at the station is N194 per litre.
He said this in an interview with NAN in Lagos on Tuesday.
“I buy petrol at N186.50k per litre from the depot, and it costs me about N9.50k to get the same litre to the pump after paying levies. How do you want me to sell at N169 per litre when I have incurred additional costs?”
“No marketer can sell petrol at the regulated price of N169 per litre with the current realities when the landing cost is N194 per litre.
“Those saddled with the responsibility of petroleum importation and pricing should be held responsible for the price disparities at the fuel stations.
“The current price of petrol does not reflect inflation, foreign exchange costs, union dues and transportation,” Osatuyi said.
He stressed that the government’s pricing template did not address current realities and pricing indices.
“We should have a template that will reflect current realities in the petrol business pending the time that government would fully deregulate the sector.
“There are some cost fundamentals, additional charges, and levies that are not factored into the template currently in use,” he noted.
Osatuyi stated that the government should increase petrol landing costs and the realistic pump price.
He stressed that a total deregulation of the downstream sector of the petroleum industry remained the best option.
According to him, total deregulation remains the solution to address challenges in the downstream sector of the petroleum industry, as it will allow interested investors to import freely.
“Total deregulation remains the best solution to ending fuel scarcity.
“The cost implication of total deregulation will make the petrol price too expensive for Nigerians, but it will shift the burden from the government to end users,” he said.
A NAN correspondent who monitored fuel stations in Lagos reported that most fuel stations belonging to independent marketers sold petrol between N180 and N200 per litre.
The correspondent reported that major marketers selling at the official pump price of N169 per litre had long queues.
