The National President of the Independent Marketers Association of Nigeria (IPMAN), Abubakar Garima, has sought the intervention of the Federal Government to check the rising pump price of Premium Motor Spirit (PMS) in the country.
Garima made this known in an interview with Nairametrics on Saturday.
His comments came as the pump price of PMS, also known as petrol, soared above N1,000 in some parts of Lagos, Ogun, and Oyo states.
What IPMAN President is saying
The president said IPMAN members are not happy with the development, but also linked it to tensions in the Middle East.
- “You know what is happening globally is one of the causes. We contacted Dangote Refinery, and up till now, I think they find it very difficult to get crude oil at a lower rate because of this crisis.
- “Yes, we buy from other depots; it’s the same thing. Other depots are selling at a higher rate as well. If Dangote sells at a lower rate, it may not be like that; they will bring it down,” he said.
IPMAN seeks relief for Dangote refinery
The IPMAN president sought “relief” for Dangote, an approach he believes will bring down prices at fuel stations.
- “So our advice is that the government can do something to support Dangote in terms of crude oil since he can refine a higher capacity of crude oil in the country.
- “So by that, they can give him a price that he is supposed to sell to the marketers so that the masses will not suffer a lot.
- “Our advice is that maybe they should reduce the cost of crude oil to him. They should not base it on the prevailing price in the world. I think a relief is necessary because of the situation,” Garima told Nairametrics.
According to him, some depots are selling at rates of N1,000 or N1,010, noting that by the time members buy from the depots and add transportation costs, the prices increase further.
- “So, in the North, they may end up selling it at N1,100 or N1,070, and in the South-West, where they have a lot of depots, they may sell it at N1,050 or N1,030. We too are not happy with the development,” he added.
Backstory
The Dangote Petroleum Refinery increased its Premium Motor Spirit gantry price to N995 per litre on Friday, marking a sharp N221 rise within four days, amid volatility in global crude oil prices and shipping costs.
- The new price followed a recent increase from N874 per litre, which was introduced earlier this week.
- The latest price adjustment has triggered a fresh increase in retail pump prices across the country, with petrol selling above N1,050 per litre at some stations.
- Some filling stations have also been shut in parts of Lagos and Ogun, compounding the ordeal of motorists and other consumers.
What you should know
Global oil prices have surged in recent weeks due to the ongoing United States–Israeli war against Iran.
- Iran has launched missile attacks on energy facilities in the UAE, Saudi Arabia, and Qatar, which could lead to further tightening of supplies.
- If the Strait remains blocked for several weeks, JPMorgan and Goldman Sachs forecast prices could exceed $100 and even reach $150 by the end of summer.
- Former White House official Bob McNally, president of Rapidan Energy Group, says the market is still adjusting to the potential duration of Hormuz’s closure.
The International Monetary Fund (IMF) has also warned that the continuous rise in the price of oil could push global inflation up by 40 basis points.
