NewStats: 3,263,483 , 8,180,281 topics. Date: Friday, 06 June 2025 at 07:43 AM 1s671j

Marketers Hint of N800 Petrol Pump Price Amid Surging Landing Cost, Worsening FX Constraints

Marketers of petroleum products in Nigeria have hinted that the pump price of petrol in the country could rise further to between N700 and N800 per litre, up from the current N580 – N617 per litre.

The oil marketers gave the hint in Lagos at the just-concluded Oil Trading and Logistics (OTL) Africa Downstream Expo, where they expressed their frustration over the return of a regulated petrol pricing regime amid rising landing costs, and shortage of foreign exchange.

Moderating one of the sessions with the topic: “Africa Fuels Update -Overview of Trends and Market Development”, Chief Operating Officer of Pinnacle Oil and Gas Limited, Mrs. Adenike Labanjo, raised the alarm over the looming price hike when she posed a question to the Executive Vice President (Downstream) of the Nigerian National Petroleum Company Limited (NNPC), Mr. Adedapo Segun.

Labanjo stated: “Now given the discussions with the ists and taking into consideration the subsidy announcement and implementation, we saw a reduction in the consumption of petrol from about 65 million litres per day to 45 million litres per day.

“Now, with the widening gap between the NNPC costs and imports, which plus or minus, could land close to N700 to N800, how do we ensure that the illegal export of petrol does not come back? Because the gaps seem to be widening by the day with the various activities going on all over the world”.

She argued that the rising cost of sourcing petrol had become more unbearable to the marketers than the NNPC because of the imbalance in foreign exchange accessibility that favours the national oil company more than the private marketers.

She added that the challenge faced by the marketers in the importation of petrol at the beginning of the deregulation pronouncement was that the market moved against them due to the volatile nature of FX or due to the inability of some marketers to lock their cargoes at the time.

Labinjo further said: “There is a major imbalance in the FX. Now, NNPC has access to that and others don’t have. NNPC too is a business on its own, but clearly, there is a competitive edge that no one in the industry can compete with. That is very clear even from the very salient points that were made today.

“We talk about things around investments even in refineries or any other type of investment on infrastructure that can the downstream business.

“With this imbalance in FX access, how can that promote investment to drive the business that we currently do, given the scenario that we see today”.

In his submission, the Executive Director of Northwest Petroleum and Gas Company Limited, Dr Mohammed Salaudeen, said the high cost of sourcing petrol had led to the shutting down of 90 per cent of petrol depots nationwide.

He lamented that the cost of buying a 10,000-metric tonne of petrol locally from the NNPC and others had surged to N7 billion, up from below half of that amount last year.

Salaudeen said the foreign exchange challenge facing the marketers had resulted in most of the players being unable to import petrol even with the approvals given by the government regulatory bodies to bring in their products.

He categorically said that only less than 10 per cent of marketers were able to buy petrol locally while about five per cent were able to import and did so at a huge loss.

He said, “If you look at the marketing plural of petroleum marketers both at MOMAN level, DAPPMAN level even at IPMAN level, how many of these associations are functioning today? Go to Port Harcourt, Calabar, Lagos, 90 per cent of depots are shut down, not operating.

“To buy a 10,000 metric tonne of petrol locally and land the same in your terminal in Nigeria, you will need about N7 billion. Twice more than what you will need about the same time last year. So, you see what’s happening and it’s quite a lot of challenge and that’s the situation of things today.”

On his part, the Managing Director of Rainoil Logistics, Mr. Jude Nwaulune, said the cost of landing petrol in Lagos has reached about N560 – 565 per litre.

Nwaulune said the cost of moving the same product from Lagos towards the company’s depot in Oghara, Delta State was about N570/litre while taking the product towards Calabar, Cross River State was around N580.

He pointed out that the challenge was basically around FX in addition to the cost of local distribution to the pumps amid the rising cost of diesel to power their trucks as diesel price now hovers around N1000 per litre.

“What that means is that when we transport this product to the filling stations, you find out that the pump price is highly unaffordable. In this chain, the independents are beginning to miss from the chain because 4,000 litres of petrol used to be N7.5 million before deregulation, is now about N25 million”, Nwaulune said.

However, reacting to questions around the perceived FX imbalance and cost of doing business that favours NNPC more than other private marketers, the Executive Vice President of Downstream, NNPC Limited, Mr. Segun, boasted that the national oil company as a private integrated company has a natural edge over its competitors.

He urged other marketers to rise to the competition posed to them by the NNPC because of its competitive edge over them.
“One thing I have to do quickly is remind people that NNPC Limited is not a government; NNPC Limited is not a regulator; NNPC Limited is a competitor to these guys. So, sometimes, when I get questions about what is NNPC doing to encourage, I think, we are in business to compete with other players and if we have a competitive edge which I alluded to earlier, it becomes imperative for our competitors to rise to the occasion,” Segun stated.

In line with the Petroleum Industry Act (PIA), he said the national oil company remained contractor to the government and was excellently positioned to be discharging its service of guaranteeing energy security for the country.

https://www.thisdaylive.com/index.php/2023/10/29/marketers-hint-of-n800-petrol-pump-price-amid-surging-landing-cost-worsening-fx-constraints?amp=1

Petrol will be sold for #1000 by December . Go and buy now and store. This is prophetic message.

Nigeria is gradually collapsing under this APC government.


Bunch of failures making life more and more difficult for Nigerians everyday

Inflammation and the implications of bad governance knows no Ethnicity or religious

Mscheew...

By the time demand drastically reduces price speculation and hoarding would reduce

Generator s are moving to inverter and solar, more people trek rather than use Okada, people are buying bicycle , Charcoal is now being used even by middle class family



.

Make una kuku kill us....

Lol.

No worries here. Nigerians will simply make noise online and adapt to buying at that price.

Marketers keep on talking and talking as of they are the ones importing petrol into Nigeria

okeysoninv:
Petrol will be sold for #1000 by December . Go and buy now and store. This is prophetic message.

Show us the ones you have buy and store

1k per 3/4 litre [no filling station sells full litre] loading. Poverty that doesn't know tribe, religion and political affiliations is enveloping the land. Big, medium and small businesses are closing down due to poor and corrupt leadership foisted on Nigeria by the organised political criminals at helms.

MS247:



Mscheew...

By the time demand drastically reduces price speculation and hoarding would reduce

Generator s are moving to inverter and solar, more people trek rather than use Okada, people are buying bicycle , Charcoal is now being used even by middle class family



.

another senseless post

By then, business will just crumble and workers will have to stay back from work....


Crime rate will increase and hunger will soar....


While Tinubu, Seun Tinubu, Remi Tinubu and the first daughter of the president will have a fulfilled dream of having power but inflicting suffering to the masses...


Tinubu has nothing to offer.

Omokri will soon switch sides ..... Just like the other fat porky pig who called on ibos to him against the very person he was ready to kill all ibos 6o protect.

MS247:



Mscheew...

By the time demand drastically reduces price speculation and hoarding would reduce

Generator s are moving to inverter and solar, more people trek rather than use Okada, people are buying bicycle , Charcoal is now being used even by middle class family



.

Tell me, when has the price of any product ever reduced when hiked?

Also, do you know the cost of using solar?

No factory with heavy duty can survive using batteries to do work.

JASONjnr:


Tell me, when has the price of any product ever reduced when hiked?

Also, do you know the cost of using solar?

No factory with heavy duty can survive using batteries to do work.

Nigerian Breweries PLC factory in Ibadan not only run on solar, and alternative energy, they supply entire neighborhood from their excess


.

MS247:


Nigerian Breweries PLC factory in Ibadan not only run on solar, and alternative energy, they supply entire neighborhood from their excess

Tell me about the cost of running such heavy battery storage?

okeysoninv:
Petrol will be sold for #1000 by December . Go and buy now and store. This is prophetic message.

Prophet of doom

JASONjnr:


Tell me about the cost of running such heavy battery storage?

I think you should google Nigerian Breweries Solar Project

MS247:


I think you should google Nigerian Breweries Solar Project

Stop talking nonsense.....

Prices of commodities go up and never come down and for a company to run a heavy battery storage with massive solar s, the cost of running that must be very high... Danfodio university has a solar but they're using light alongside with the solar.... It powers the school and nearby communities and was done with the help of foreign organisation partnering with FG.

Companies who run on complete solar must have had a massive land to layout the solar s.

JASONjnr:



Stop talking nonsense.....

Prices of commodities go up and never come down and for a company to run a heavy battery storage with massive solar s, the cost of running that must be very high... Danfodio university has a solar but they're using light alongside with the solar.... It powers the school and nearby communities and was done with the help of foreign organisation partnering with FG.

Companies who run on complete solar must have had a massive land to layout the solar s.

Do you need money for data

Please google the project and stop goofing around

Read it in white and black

And stop this irrelevant unnecessary arguement

Read black man read

MS247:


Do you need money for data

Please google the project and stop goofing around

Read it in white and black

And stop this irrelevant unnecessary arguement

Read black man read

You that have enough money to buy data.... Why can't you browse the cost and tell me.....


Again, don't say what you don't know....

JASONjnr:


You that have enough money to buy data.... Why can't you browse the cost and tell me.....


Again, don't say what you don't know....

Lol

Abeg stop qouting me

MS247:



Mscheew...

By the time demand drastically reduces price speculation and hoarding would reduce

Generator s are moving to inverter and solar, more people trek rather than use Okada, people are buying bicycle , Charcoal is now being used even by middle class family



.

We are been helplessly drag back to stone age.
I guess we should also learn to make fire using stones?

Usmanovic95:


We are been helplessly drag back to stone age.
I guess we should also learn to make fire using stones?

Yes we should if that would help global warming

From top to bottom

MS247:



Mscheew...

By the time demand drastically reduces price speculation and hoarding would reduce

Generator s are moving to inverter and solar, more people trek rather than use Okada, people are buying bicycle , Charcoal is now being used even by middle class family



.

Can you buy something and sale at a loss?

mrvitalis:

Can you buy something and sale at a loss?

It's called clearance sales... Or how do you think some very clean cloths are sold as okiririka

okeysoninv:
Petrol will be sold for #1000 by December . Go and buy now and store. This is prophetic message.

lol mumu attention seeker, every sane Nigeria can predict that so stop disgracing your religion for attention.Are you not ashame of yourself the way you are disgracing Christians on nairaland everyday? this constant showing of deficiency in your brain will only make people see Christianity as a pure jokes

Ok

MS247:


It's called clearance sales... Or how do you think some very clean cloths are sold as okiririka

Them start petrol importation business na

mrvitalis:

Them start petrol importation business na

It's an open market.. I can if I have the capital

But Bovas, AA, Rano even Ifeanyo Uba and Obat will ship in PMS and store it for less

MS247:



It's an open market.. I can if I have the capital

But Bovas, AA, Rano even Ifeanyo Uba and Obat will ship in PMS and store it for less

Learn to shut up when you don't know anything about a business or you do it simple

Stop telling people how to run their business