Fuel subsidy removal: Marketers hike petrol in Niger, Benue, Kano, fault transport cost

Oil marketers in northern states including Niger, Benue, Kano and Plateau have increased the pump price of Premium Motor Spirit, PMS, popularly known as petrol.

The Independent Petroleum Marketers Association of Nigeria, IPMAN, confirmed the price hike on Sunday, November 5, attributing it to the high cost of diesel used by trucks that transported petrol from the South to the North.

It was gathered on the same Sunday that the former depot price of petrol at private tank farms had increased to between N610 per litre and N615 per litre, making independent marketers to raise their price at filling stations to between N630per litre and N680 per litre, depending on the location of purchase.

Former depot price is the price marketers buy products at the depot and it determines the price at which they will sell to motorists.

The cost of petrol at filling stations operated by independent marketers in the North about two weeks ago, ranged from N617 per litre and N625 per litre, but it has now increased to between N640 per litre and N680 per litre.

Explaining the price hike particularly in the North, the spokesman for IPMAN, Chief Ukadike Chinedu, said, “You know that because we are importing PMS, the products come in through the coastal areas. So trucks travel several kilometres to come and get products from these coastal areas and distribute them to the far North and other distant regions.

“We have problems associated with logistics. The forex rate and diesel price are also key issues. The price of diesel is about N1,200/litre. We use diesel to move the trucks that convey products to filling stations.

“We also have bad roads, as most of these trucks spend close to one week on roads while trying to move products to retail outlets. All these things are expenses and at the end of the day it will definitely add to the pump price.”

Also, the Secretary of IPMAN, Abuja-Suleja, Mohammed Shuaibu, said the cost of running the business was becoming too high, stressing that the government should intensify efforts in getting refineries to work.

“The price of petrol will continue to fluctuate as far as we use forex to import it. We all know that there have been fluctuations in the forex rate. So the main solution is domestic refining of crude and until we get our refineries working, we will continue to experience these challenges,” he stated.

The high cost of transportation is affecting the price of petrol in the North. In Niger State, nearly all the fuel stations have increased their pump price compared to the last two weeks when the prices ranged from N617 to N640.

All the fuel stations in Minna, the state capital, have settled for a uniform price of N650, although there are stations that sell for N645 to N649.

An attendant at the Shafa Fuel station explained that getting the product was becoming more problematic and explained that they had no option but to increase the pump price By N10.00.

Also in the Benue State capital, Makurdi, it was observed that the price of petrol was between N655 and N660 per litre.

The product was sold between N630 and N635 per litre about two weeks ago.

Some motorists in Jos, the Plateau state capital are groaning over the arbitrary increase in the pump price of petrol in the state

Most of the filling stations were selling beyond the official post-subsidy removal prices

The price has increased to N670 per litre, unlike last week when some marketers sold the product between N640 and N650 per litre.

A motorist, who lamented the situation, described the attitude of petroleum marketers as exploitative saying “ In Jos , PMS has no stable price again. All the marketers are just selling at any price they like. You can sell at N640 today and the next day , you will discover that the price has been adjusted to N640. That is the situation now.So for now, we don’t know what they will sell tomorrow”

Also in Sokoto State, it indicated that only the Nigerian National Petroleum Company Limited, NNPCL. filling stations in the state sold for between N615 and N620 while other major marketers sold for between N640 and N650.

Some other filling stations especially those owned by independent marketers in the state sell a litre of products between N680 and N690

The residents lamented over the cost of fuel which they said was having a major effect on the price of foodstuffs.

Fuel price especially at filling stations owned by IPMAN in Kano State is between N660 and N670 per litre as against the former price of N640 and N650.