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Friday, January 20, 2023

Fuel Scarcity: FG secretly approves N185 per litre as official pump price

Notwithstanding the raise in fuel pump price, independent petroleum marketers said supply remains an issue.

• January 20, 2023
NNPC mega station
NNPC mega station used to illustrate this story

In the wake of crippling fuel scarcity, the federal government has quietly approved N185 as the new official petrol pump price per litre.

The government had previously stated that the subsidy regime would be gradually phased out beginning in April.

However, the government ordered that the new price go into effect right away in a notice to fuel marketers on Thursday.

The price increase is meant to make up for the market realities brought on by rising exchange rates and high lightering costs.

However, as of Friday afternoon, many filling stations were still selling above the new price range, indicating that some marketers had yet to adopt the new price.

Checks by Peoples Gazette in the Ojodu, Lagos, revealed that marketers were still selling above N200 per litre. A litre of fuel was sold at N240 at Nationwide filling station and N230 at Amuf filling station as of Friday afternoon.

A liter of fuel costs N230 in Oando filling station, Ogba. BOVAS, on the other hand, had adjusted their pump price to the new approved N185 per litre.

Mike Osatuyi, national controller of operations for the Independent Petroleum Marketers Association of Nigeria, told BusinessDay that the raise was meaningless if regulators don’t address supply issues.

“Most of my members are struggling to get products from NNPC’s depot; we are currently in a messy situation with supply despite the increase in pump price,” Mr Osatuyi said.

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