The Independent Petroleum Marketers Association of Nigeria on Tuesday directed its members in the Southwest region of the country to begin sales of the Premium Motor Spirit (popularly known as petrol) at N162 per litre.
This followed the announcement by the Petroleum Products Marketing Company of an increase of ex-depot price for the product N138.62 to N151.56 per litre.
The ex-depot price is the cost at which the product is sold to marketers.
The pump price of petrol before the latest increase was within N148-150.
The Energy Frontier independent analysis on Tuesday had put expected pump price in the latest dispensation within the band of N160 – N163.
The PPMC, which is a subsidiary of the Nigerian National Petroleum Corporation , announced the new price in a memo to industry stakeholders.
The southwest Zonal Chairman of IPMAN, ‘Dele Tajudeen in a telephone chat with journalists in Abeokuta, the Ogun state capital, said his members would be left with no other option than to dispense the product at a price of N162.
Tajudeen said, the directive followed the increase in the deport loading price of the product by the federal government, which placed a new price regime of the product at N151. 56k.
He explained that since the federal government has decided and puts the price of the product at N151. 56k, IPMAN has no option than to sell at N162 to be able to meet up with the overhead cost.
Tajudeen said IPMAN members would have to make provision for the cost of diesel to run generator that will power the dispensing machines; pay the cost of transporting the fuel from the depot to their respective filling stations and also settle their statutory levies with the appropriate regulatory agencies.
That by the time they finish paying all these levies, the cost of discharging fuel at the petroleum filling stations would have shored up to N160, hence dispensing the product at N162 will enable IPMAN members to be able to pay the staff bills and the stations’ gains.