Lagos, May 13, 2024 – The independent Petroleum Marketers Association of Nigeria (IPMA) has expressed concern over the high cost of loading at private depots now at N770 per litre.
Alhaji Abubakar Maigandi, its National President, expressed the concern at the weekend while speaking with journalists in Lagos.
He said the high cost of loading at the private depots had led to higher price of petrol in spite of availability of the product.
According to him, the depots are complaining that the cost of cargo freight at the high sea has increased and affected their prices.
He said the average price of petrol in Lagos area could go up to N800 per litre considering cost of transportation which is between N30 and N35 per litre.
Maigandi said for those lifting the product as far as Kebbi State, the cost of haulage from Lagos to Kebbi is about N70 per litre.
“So, petrol sells at between N900 and N1,000 per litre in Birni Kebbi.
“Petrol is a little bit available now because there is no queue. But the only thing is the cost in the private depots. They sell it at N770 per litre.
“They are complaining about the transportation for their cargoes from the high sea. That is the reason they increased the price.
“At that rate, the pump price depends on the distance. Where you will spend N30 like in Lagos, if you add N770 plus N30, it is N800.
“Then they have to add the margin for the profit because the capital you are going to use is almost N30 million plus the capital to buy the product.
“Like 45,000 litres. If you multiply 45,000 times by N770, you will see the amount. Within Lagos, you have to pay N30 or N35. Then when you are coming to the Northern part, it is N60 to N70. In Kebbi, a litre of petrol is N900 to N1,000/litre,” he said.
Maigandi said respite would only come when Dangote and the Port Harcourt Refineries start producing petrol. (GBN)
