Oil marketers across the country have projected that the pump price of petrol could rise above N700 per litre in Northern Nigeria starting from July.
The National Controller Operations, Independent Petroleum Marketers Association of Nigeria, Mike Osatuyi, told our correspondents on Wednesday that prices could rise to above N700 in the north once independent marketers start importing products in July.
He said while those living in the northern states could pay as much as N700 and above for one litre of petrol, those outside Lagos should expect to pay around N610, as residents in Lagos would pay about N600 per litre.
“What I am seeing is around N600 and above, depending on the exchange rate, the current crude price at the international market, and the landing cost. Those in Lagos will pay around N600, those outside Lagos around N600 plus, while those in the north would be paying anything from N700 and above,” he said.
The downstream sector currently awaits fresh petroleum products as the Nigerian Midstream and Downstream Petroleum Regulatory Authority continue to licence operators willing to get involved in the importation business.
The Executive Secretary of, the Depot and Petroleum Products Marketers Association of Nigeria, Olufemi Adewole, on Tuesday, said that the NMDPRA was currently licensing more importers.
“Where do countries like Ghana, Benin, and Cameroun get their products from? Is it not from Nigeria?,” he asked, referring to products being smuggled from Nigeria to neighbouring countries.
“Prices of products will depend on market fundamentals, and as we speak, the Nigeria Customs Service is delaying some AGO (diesel) vessels because of the 7.5 per cent VAT.
“And don’t forget, any cost incurred by marketers would be added to landing cost, and then to the pump price. The marketer would also have to add profit because they must make a profit,” he said.
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