Oil Marketers’ Increase In Petrol Price Done Without FG’s Approval—Sylva

The federal government has said that the recent increase in petrol price by oil marketers was unilaterally done without government’s approval.

The Minister of State for Petroleum Resources, Timipre Sylva who stated this explained that the government has not deregulated the price of Premium Motor Spirit popularly called petrol.

He said that the product is still being subsidized by the federal government and as such there is no basis to sell above the N165 per litre pump price approved by the government.

Oi marketers had in the last three weeks raised the pump price of petrol selling for between N175 per litre and N185 per litre.
The hike which came a day after Major Oil Marketers Association of Nigeria, MOMAN, said the current price was no longer realistic saw the disappearance queues at filling stations around Abuja metropolis.

The Public Relations Officer, Independent Petroleum Marketers Association of Nigeria, IPMAN, Chief Chinedu Ukadike had defended the hike stating that it was expected as marketers have to cover their cost of operation.

Ukadike explained that the marketers have been running at a loss these past months, pointing out that most stations closed down because of this.

According to him, “We have also stated that there is no way marketers will buy products from private depots who are now selling at N170 and some at N167 depending on the area the tank farm is situated. These private tank farms owners have made it clear that they cannot sell at government approved price.

“Marketers cannot buy at N167-N170 and you expect them to sell at N165. This is why marketers have looked at the high cost of logistics because diesel is at N850 per litre now and to transport product from these wet areas to dry areas cost a lot of money.”

But reacting to the development on the sidelines of the stakeholders’ consultation forum on Midstream and Downstream Petroleum Regulations organised by the Nigerian Midstream and Downstream Petroleum Regulatory Authority in Abuja, Sylva said that the product is still being subsidized by the federal government.

He said with the huge amount being spent by the government subsidzing the petrol, there is no basis to sell above the N165 per litre pump price approved by the government.

He said, “I can tell you authoritatively that we have not deregulated. The government is still subsidising, if there are increases in the price it is not from the government, it is probably from the marketers.

“But, of course, I will talk to the NMDPRA’s Chief Executive to ensure that they actually regulate the prices. But this is not from the government because we have not deregulated.”

When asked why no action had been taken against the marketers, the minister replied, “Well, I don’t know about monitoring exercise. But I know that the authority is fully on their job and the queues will be dissipated very soon.”

Earlier, the Chief Executive, NMDPRA, Farouk Ahmed, said the programme was in accordance with the demands of the Petroleum Industry Act to allow stakeholders participate in the making of regulations which impact on them.

He said that section 216 of the Petroleum Industry Act mandates the authority to ‘consult with stakeholders prior to finalising any regulations or amendments to regulations.’

Ahmed said the regulator had so far published and received significant feedback on the 10 regulations to be guiding the PIA.