IPMAN Denies Petrol Price Hike to N700, Claims Market Forces at Play

IPMAN Dismisses Claims of Petrol Price Hike to N700, Citing Market Forces

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The Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Association of Distributors and Transporters of Petroleum Products (ADITOP) have strongly refuted recent reports suggesting an imminent increase in petrol price to N700 per litre.IPMAN Denies Petrol Price Hike to N700, Claims Market Forces at Play

In an exclusive interview with the News Agency of Nigeria (NAN) on Saturday, both associations dismissed these claims as mere speculation and emphasized that the current fuel price is driven by market forces.

The discussion surrounding a potential hike in petrol price has been fueled by the present high exchange rate and predictions made by certain oil marketers.

The Nigerian Naira experienced a depreciation of 0.82% against the US dollar, reaching an exchange rate of N769.25 at the investors and exporters window.

Based on this exchange rate, along with crude oil prices and landing costs, some oil marketers had forecasted that petrol prices could exceed N700 per litre in the northern region and reach around N600 in Lagos when independent marketers commence product imports from July.

The anticipation of a potential petrol price increase led to tension and panic buying among motorists, resulting in long queues at some filling stations in the Federal Capital Territory (FCT) over the weekend.

However, it is worth noting that retail outlets operated by the Nigerian National Petroleum Corporation Limited (NNPCL) and others continue to dispense fuel at prices ranging between N540 and N542 per litre.

IPMAN President, Chinedu Okorokwo, dismissed the reports of an impending price hike as mere speculation, attributing any potential increase to the high exchange rate that could affect the importation of petroleum products.

Okorokwo emphasized that, under the current deregulation policy, the oil market is open to importers who are willing to engage in the business and will be licensed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

Echoing similar sentiments, ADITOP President, Alhaji Lawan Dan-Zaki, stated that the predictions were primarily driven by the prevailing high exchange rate and that importers would only sell fuel based on international market rates.

Dan-Zaki urged Nigerians to exercise patience as petrol prices are expected to continue fluctuating due to market forces until they stabilize.

He further revealed that the NMDPRA had issued importation licenses to five companies to ensure an adequate supply of fuel in the country.

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