Selling petrol at N165 is unrealistic – IPMAN says as fuel scarcity persists in Lagos
According to the Independent Petroleum Marketers Association of Nigeria, (IPMAN), members have stated that petrol prices at the pump are too high for consumers.
Akin Akinrinade (chairman of the Lagos chapter) stated this in reaction to recent fuel shortages in Lagos. He said that the current state of affairs is due to the hostile operating environment.
Akinrinade stated that marketers find it difficult to function due to the increased dependence on diesel, which has skyrocketed in price. Akinrinade cited the high price of petrol at depots, the high price of diesel to run their stations, and the rising cost of freight as major reasons. Akinrinade stated that the recommended price for the product was N165 per litre. He also said that the petrol landing cost was N175 to N178 per litre.
“Members of Independent Petroleum Marketers Association of Nigeria IPMAN have shut down their stations, not because we are striking; we are not on strike. Rather, the business environment has been very hostile to us such that we can no longer do business under this condition. For you to load a litre of petrol, you pay in N162 per litre.
You now have to add the cost of transportation which is between N6 to N8, depending on the distance within Lagos. If it is outside Lagos, it is much more than that.
So, if you add N8 to N162, you already have N170 and the government which is the regulator wants us to sell at N165; we have not even added the charges at the depot and the running cost at our stations.
You know what diesel says now, and you know how epileptic power supply is; we run on generator, using diesel at N800 per litre. There is no station in Lagos that uses less than 50 litres (of diesel) per day.
So, our members can no longer sell (petrol) at N165 per litre; in fact, there is no reasonable person in this business that can sell below N180 per litre.”