The Independent Petroleum Marketers Association of Nigeria (IPMAN) has foreseen a potential surge in the pump price of petrol, estimating that certain states in the country could experience prices exceeding N700 per litre starting from July.

In an interview with Punch, IPMAN’s National Controller Operations, Mike Osatuyi, explained that the anticipated increase in northern states could reach N700 and above, while those outside Lagos might pay around N610 and Lagos residents around N600 per litre.

Osatuyi attributed the price revision to factors such as exchange rates, international crude prices, and landing costs.

He highlighted that the Federal Government’s roadmap following a meeting with labor unions was eagerly awaited, and the adoption of Compressed Natural Gas was being pursued to deepen its usage.

The confirmation of three marketers scheduled to import products from July would determine the actual prices, as the current price was considered transitional.

Olufemi Adewole, Executive Secretary of the Depot and Petroleum Products Marketers Association of Nigeria, noted that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) was granting licenses to additional importers.

Adewole emphasized that product prices would depend on market fundamentals, pointing out neighboring African countries that import petrol as potential benchmarks.

Tunji Oyebanji, former chairman of the Major Oil Marketers Association of Nigeria, and CEO/Chairman of 11 Plc, concurred that consumers should anticipate pump prices similar to diesel and neighboring countries’ rates.

He emphasized that competition would arise as products became widely available, leading to price adjustments and healthy market dynamics.

Despite existing products in the country loaded at a government price of N496.50 per litre, the recent foreign exchange policy of the central bank, with the Naira reaching around N765/$1, has caused uncertainties.

Oyebanji mentioned that importation licenses had been granted, and companies were exploring options such as borrowing from abroad or local banks to resume imports.

Several firms were working to import products, but the specifics and implications of the new policy would become clearer once new supplies arrived.