Tuesday, February 18, 2025
spot_img
- Advertisement -News Reviews Nigeria
BusinessFear Of Petrol Price Hike, Marketers Meet Lokpobiri .

Fear Of Petrol Price Hike, Marketers Meet Lokpobiri .

January 16, 2025

By Idris Buba

Petroleum marketers on Thursday allayed the fears of Nigerians over imminent rise in the price of the Premium Motor Spirit (PMS) petrol due to rise in crude oil price, after the Petroleum Industry Stakeholders Forum Meeting with the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri.

Briefing journalists at the forum in Abuja, the chairman of Major Energy Marketers Association of Nigeria, MEMAN, Huub Stockman, said the rise in crude oil price does not automatically translate to increased petrol price.

However, he admitted that crude oil is a major component of the pricing template, but stated that other market parameters also determine the cost of PMS.

He emphasized that it was too early to conclude that high crude oil prices would result in increased petrol prices.

“I think that is always a bit of a crystal ball conversation if you know what I mean. Because crude and product prices don’t always directly relate.

“And it’s not always so that when the crude changes, immediately all other products that are derivatives from it change.

“So if I knew, I would probably not be standing here, but I would do something else. But I think normally there is a correlation. But I think it is too early to say when or what impact it would have.”

The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, had earlier in the meeting said it is natural for prices to fluctuate in a deregulated market.

READ MORE; No More Turnaround Maintenance But Comprehensive Overhaul For Kaduna, 2nd PH Refineries– NNPC

He stressed that international crude oil prices are accountable for product prices all over the world.

“And so, nobody in a deregulated market can tell you that, okay, prices will come down or will not come down.

“It is dictated by the international crude oil price. And Nigeria can’t be an exception at all.”

Lokpobiri, said the essence of deregulation is for prices of petrol to oscillate in line with market forces.

“Well, you know, the whole essence of deregulation is, you know, for price to find its level.

The minister explained that in a deregulated regime, government concern is to ensure quality control, product availability, and the dispensing of the right quantity.

READ MORE; Dangote Refinery Partnership Deal, MRS Oil Hits 52-Week High  

He said, “So, what we are concerned about, and I have always had that discussion with you, with the authority Chief Executive of NMDPRA, that is what government is more interested in is quality control.

“What government is more interested in is availability. What the government is particularly interested in is the disposition of the right quantity. If I buy 10 liters of fuel, let it be that we are not surchanged by the pump fuel price. “

He said there were no queues in the last few weeks because of the competition that emanated from the deregulated market.

The minister said the whole essence of the meeting was to bring the entire leadership of the industry, oil industry, together and keep them abreast of the happenings.

He added: “So, that we will be able to build consensus around saying things that we think will be better for the industry.”

Meanwhile, the Independent Petroleum Marketers Association of Nigeria (IPMAN), National President, Alhaji Abubakar Maigandi confirmed that his members have been lifting products directly from Dangote Refinery and also from the Nigerian National Petroleum Company Limited (NNPCL).

 

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Subscribe Today

GET EXCLUSIVE FULL ACCESS TO PREMIUM CONTENT

We do analysis, summaries and evaluation of news stories.

TOPICAL VIDEO

Get unlimited access to our EXCLUSIVE Content and our archive of subscriber stories.

Exclusive content

- Advertisement -News Reviews Nigeria

Latest article

More article

- Advertisement -News Reviews Nigeria