Ex-MOMAN boss cautions against speculation of fuel price

Mr. Tunji Oyebanji, former Chairman, Major Oil Marketers Association of Nigeria (MOMAN), has cautioned Nigerians, especially marketers, against speculations over petroleum pump prices. He said this in an interview on Friday in Lagos.

He was reacting to a recent statement by Mr. Mike Osatuyi, National Controller Operations, Independent Petroleum Marketers Association of Nigeria (IPMAN), that the pump price would go up to N700 per liter.

On June 28, Osatuyi projected that prices could rise to above N700 per liter in the north once independent marketers start importing the products in July.

Oyebanji said that no marketer could speculate on the fuel pump price until importation of the product started.

Oyebanji, also the Managing Director of 11 Plc, said: “It depends on the exchange rate. If those factors change, the prices of those products will also change.

“As you know, at a time, diesel went up significantly at above N800 per liter, but now it has come down to within N600 to N620 per liter.

“So, once you are in a deregulated environment, that is how it is, especially when you are importing the product.

“I can not project price of petrol for now until we import the product.”

According to Oyebanji, at some point, the projection is speculation.

“Not until you order a cargo and know the exchange rates can you predict the price.

”Those projecting the price are just saying this on a sensational basis to get marketers excited.

”I do not think anybody needs to do that.

“If there’s a certainty, if you are observing the exchange rates, you will see that it is getting worse. if the price at the international market is also going up, then you see how those things are being affected and that is how the price comes in.

“We cannot mitigate prices; people will have to adjust their spending accordingly and prioritize their choices,” he added.

Oyebanji, however, added that the price could also be reduced, depending on the exchange rate.

“The bottom line is that there will be an adjustment in price. Yes, it may go up and also drop, depending on the exchange rate.

“But the good thing is that products will be everywhere. If people see that yours is more expensive than those of the filling stations around them, they will not patronize you. Then, you will be forced to bring down prices so that customers can come and buy.

“There will be healthy competition, which is good for the market,” he said.

Meanwhile, Osatuyi said that fuel being sold by marketers such as DAPPMAN, IPMAN and MOMAN are old stock

“Nobody has imported new products from the new foreign exchange regime or the new deregulation.

“Marketers are just planning to import, so everybody is in a transitional pricing phase to the new regime.