There are clear Indications that the National average Price of Petrol is set to rise further as Fuel Marketers align their costs with the Increasing Exchange Rates.
Marketers, in light of the continued Depreciation of the Naira, have stated that their Expenses have surpassed the figures used to determine the current Pump Prices.
The existing National average Pump Price of N500 per liter was calculated based on an Exchange Rate of N661/$.
Recent Investigations by Kukuruku-News have revealed that many Major Oil Marketers have already adjusted their Prices to N492-495 in Lagos, deviating from the earlier N488 Positions set by the Industry shortly after the removal of Subsidy was announced by President Bola Tinubu on May 29, 2023.
In Lagos, Independent Marketers have gone even further, setting their average Pump Price at around N515, while Prices outside Lagos have soared above N650.
Marketers have expressed concerns that with the closing Rate at the Investors and Exporters (I&E) Foreign Exchange Window standing at approximately N770/$ since last week, the Pump Price could reach N550 per liter as early as next month.
As Marketers commence the process of Importing Petrol under the new Market regime, challenges related to raising Funds for Importation have emerged.
Checks conducted by Kukuruku-News have shown that the volatile Business Environment has made it uncertain for Oil Marketers to secure the necessary Funding.
While some Marketers have Initiated discussions with Banks, these engagements have been hindered by the current Instability.
However, the Oil Marketers remain determined and will Intensify their efforts to Import substantial Quantities of Petrol.
Commenting on the Development, yesterday, the Chief Executive Officer, of Ardova Plc, who doubles as Chairman of MOMAN, Mr Olumide Adeosun, said: “It takes a little bit of time to arrange the Forex, which still is not Optimal at present.
“Then the logistics, availability of suitable vessels, and other Issues also affect Operations.
All the same, we expect to see some Inflows from non-NNPC Limited Sources in July 2023.’’
Also, commenting on prices, he said: “Prices may go up before they come down in any Event.”
The Managing Director/CEO of 11 Plc, Adetunji Oyebanji, who was also a former Chairman of MOMAN, confirmed planned moves by his Company to Import the Product, stressing “it is likely to be towards the middle of July 2023.”
This means that major and Independent Oil Marketers will still depend on NNPC Limited to bring in the Product from the Global Market for at least the next month.
