WITH the increase in the price of kerosene from N50 to N83 by the Nigerian government, the Independent Petroleum Marketers Association of Nigeria, IPMAN, has urged the government to give more licences to marketers to ensure availability of kerosene in the country. Chinedu Okoronkwo, president, IPMAN, who gave the advice in an interview with the News Agency of Nigeria, NAN, on Tuesday, January 26, said the new pump price was a good development in the right direction.
Okoronkwo stressed the need for government to ensure availability of the products to the benefit of the consumers. He called on the Department of Petroleum Resources, DPR, to issue more licences to marketers to enable them to import and circulate the product. He said the government should issue licences to encourage people build mini refineries.
According to him, this would go a long way to improving on the nation’s economy and bringing about development in the oil and gas sector.
The Petroleum Products Pricing Regulatory Agency, PPPRA, had increased the price of kerosene from N50 to N83. This was contained in its products pricing template, released on Sunday, January 24, in Abuja.
The agency stated that the N83 per litre price applied only to the Nigerian National Petroleum Corporation, NNPC, outlets.
The template also showed that at N83, the federal government will be making a gain of N10.72 on every litre. It further puts the expected open market price, which is the landing cost plus total margins at N72.28 per litre.
The expected open market price is the prevailing market rate for the product in Nigeria, after taking certain costs into consideration. Giving a breakdown of the price, the PPPRA template put the landing cost of the product at N57.98 per litre, while the total margin due middlemen was put at N14.30.
The retailers’ margin was put at N5 per litre; transporters at N3.05 per litre, and dealers at N1.95 per litre. It further put the bridging fund at N5.85 per litre; marine transport average at N0.15 and administrative charges N0.15. It stated that the official ex-depot price, which depot owners would sell to marketers, is N68.70 per litre. The official ex-depot price for collection is N73 per litre, while ex-coastal price is N68.02 per litre.
The official price difference is not expected to matter much to millions of poor Nigerians who are used to buying the product at over N100 per litre.
— Feb 8, 2016 @ 01:00 GMT