IPMAN reveals why fuel price will not reach N700 amid panic buying

The Chairman of the Independent Petroleum Marketers Association of Nigeria (IPMAN), South-West branch, Dele Tajudeen, has dismissed claims on the planned increase of fuel price to N700 per litre.

Tajudeen, who addressed journalists on Friday in Lagos, said filling stations would continue to maintain the current price of fuel, adding the report of petrol litre rising to N700 was just a speculation.

The price of fuel increased from N189 to above N500 per litre in June following President Bola Tinubu’s announcement on the removal of fuel subsidy in his May 29 inaugural address.

However, reports emerged last week that fuel marketers planned to increase products price to N700 per litre due to the naira devaluation which has increased the dollar rate from N464 to about N769/$1.

But Tajudeen stressed that there was no reason for the price of fuel to rise from N500 to N700 because of the increase in the foreign exchange rate.

He urged Nigerians to avoid panic buy because of the misleading information.

The IPMAN chairman said: “If we look at the price from NNPC retail limited, which is an integral part of NNPC limited, they have more advantages than independent marketers and major marketers.

READ ALSO:IPMAN says NNPC is reason fuel can’t be sold below N500

“So, it was the retail price that they announced [and] they have never given a specific price to the independent marketers.

“However, I have read what somebody put into the paper, it is just speculation it is not a reality. Nothing like that I want to assure the masses.

“There is no how the price can go to N700 as we speak, because even if the foreign exchange (FX) is N700 or N800 that has nothing to take the price of petroleum from N500 to N700.”

He also explained why the current prices of fuel vary across states and regions.

Tajudeen added: “If you are moving products within Lagos the price may not be more than N300,000 but if you are moving up to Ibadan or there about it could be as much as N500,000. If you are going to Ilorin, it could be as high as N700,000, which would account for the difference in prices.

“I want to say with all sense of authority that as of today within Lagos metropolis nobody should sell more than N515 to N520 per litre.

“Though NNPC has given us the price, the reality of it is that we buy from the market; because NNPC limited is not the only source for our product, we get it from private depots.

“So, whatever we buy is what we put on our own margin and sell.

“But as of today, the highest you can get anywhere should be around N550; Lagos, N510 per litre, Ogun State between N500 and N520.”

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