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IPMAN threatens to sell petrol above ex-depot price

petrol pump in a gas station

The Independent Marketers Association of Nigeria, (IPMAN), recently disclosed that the price of Premium Motor Spirit (petrol) might soon increase if depot owners continue to sell between N136.50 and N137 per litre.

The Chairman of IPMAN, Ore Depot, Mr Shina Amoo, made this known in an interview with journalists in Lagos.

“Private depot owners have increased the ex-depot price of PMS beyond N133.28 per litre. We bought a litre of PMS between N136.50 and N137 per litre from private depot owners last weekend. This can affect the pump price at which independent marketers will sell the product, and it will certainly be beyond the N145, which is the official pump price.”

They are going against the regulated price – Despite the warnings of the NNPC to punish anyone who sells above the ex-depot price, private depot owners are allegedly still selling above the regulated price of N133.28 per litre.

How will this hike affect Nigerians?

Anytime there is an increase in petrol price, the people at the receiving end are always the poor women and children. Usually, a rise in fuel price ultimately end up affecting the prices of other goods and services.

It affects the prices of products due to transportation – whenever there is an increase in petrol price, the cost of transportation unavoidably increases as well, thereby forcing business owners to spend more to transport their goods. Therefore, to recoup their profits, they increase the prices of their products.

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Amoo begs NNPC to caution depot owners – Amoo urged the NNPC to call on all depot owners not to sell beyond the office ex-depot in order to enable marketers sell to consumers at N145 per litre.

Why are depot owners selling above the fixed price?

There really is no imperative reason as to why depot owners sell petrol above the regulated price. Currently the country is not experiencing shortage of petrol because the NNPC has about 1 billion litres of PMS in stock.

Therefore, the only reason why anyone would be selling above the regulated price, is to profiteer.

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