IPMAN, PETROAN explain latest fuel price increase

The Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) have explained why petrol prices have increased across the country.

The national presidents of IPMAN and PETROAN, Abubakar Maigandi and Billy Gillis-Harry, respectively, said the increase was mainly caused by rising global oil prices, the ongoing conflict between the United States and Iran, and the prices at which petroleum products are supplied to retailers.

Petrol prices have risen to between N1,310 and N1,345 per litre, from about N1,210 to N1,275 per litre less than two weeks ago.

Maigandi said the conflict between the United States and Iran was a major factor behind the latest increase.

He explained that changes in global oil prices could affect the price of petrol in Nigeria, causing it to either increase or decrease.

According to him, the ongoing conflict has created uncertainty in the global oil market, which is affecting petroleum prices.

Gillis-Harry, however, said petrol retailers were not responsible for the increase.

He explained that retailers must sell based on the price at which they buy petroleum products from suppliers.

He said retailers could not buy petrol at a high price and sell it below their purchase price because they still had to cover expenses such as transportation, financing, logistics, services and other operating costs.

Gillis-Harry said retailers only add a small margin to their purchase price to remain in business.

He stressed that the latest increase was caused by the price charged by suppliers rather than by petrol retailers.

He said retailers were simply passing the prevailing cost of petroleum products to consumers.

The PETROAN president maintained that retail prices were based on the actual cost of obtaining the products and were not arbitrarily fixed by filling station operators.