Lagos, June 14, 2023: Following the recent deregulation of the downstream sector, the Independent Petroleum Marketers Association of Nigeria (IPMAN) says marketers can merge to remain in business.
Mr Mike Osatuyi, IPMAN’s National Operations Controller, said on Wednesday in Lagos.
Nigerian National Petroleum Company Ltd. (NNPCL) new pump price is between N488 and N557.
Osatuyi said that with the increase in pump price of petrol, marketers could collaborate to buy a truck of 45,000 litres of petrol and later share.
According to him, like-minded marketers can merged together to buy the product.
“There is rooms for marketers to contribute money and buy petrol product together and share among like minds.
“We can buy a truck in the name of a particular marketer and co-share.
“Currently, to buy a truck of 45,000 litres of fuel, it goes as high as N21 million as against the initial N7.7 million,” he said.
The IPMAN boss said that the current market price is determined by the market forces which increases or decreases at any time.
“With the new trend of deregulation of the downstream sector, more money is required to buy petrol. People who are trading with money for one truck, may no longer be able to do so.
“This may also lead to clampdown of some filling stations.
“However, total deregulation of the sector remains the best option for the country. Then, government can use the money to develop other sector,” Osatuyi added.
Similarly, Mr Tunji Oyabanji, Managing Director, 11 Plc, said that marketers who do not have sufficient money to trade, might be caught up with the reality of a free market.
Oyebanji said that only the financially strong members would survive, adding that those stations and tank farms that were not economically viable would also be affected.
“Definitely, it is now business and those without money can not fit into the system. If you have money, you will survive just as every other business.
“Marketers who have the financial muscles will be in business, but those without liquidity will find it extremely difficult to weather the storm,” he said.
NAN also reports that the Central Bank of Nigeria (CBN) has allowed commercial banks to freely trade foreign exchange at any rate.
The development is in line with the new policy direction of President Bola Tinubu of eliminating multiple exchange rates.
Tinubu is determined to unify the exchange rates, to bring confidence into the economy and reduces the high level of volatility in the FX market.
Consequently, CBN has directed banks to remove the cap on the investors and exporters’ (I & E) window of the foreign exchange market in a bid to float the local currency.
