Tinubu’s decision ‘still vague, not clear’– Petrol dealers, to unveil new price/litre in July
Petroleum Dealers Association of Nigeria (PEDAN) has described the decision announced President Bola Tinubu, Monday to scrap petrol subsidy is still vague and not clear, just as it stated that its response by way of price adjustment will be determined in July, this year.
According to the group, the decision announced by President Tinubu, on Monday, is ‘still vague and not very clear,’ as it also admitted that eventually ‘pump price of petrol will go up.’
General Secretary, Ibrahim Yahaya, speaking, Tuesday, during a briefing, said operators in the industry, including marketers, would begin to engage with authorities to fully understand the aspect of the subsidy being removed.
According to the PEDAN chief, ‘presently, the government pays equalisation cost which covers internal movement of petrol distribution and landing cost,’ adding that from unverified data, landing cost is about N500 per litre while cost of bridging from Lagos to Abuja is N48 per litre.
“Now when you add these costs together and marketers’ margins it will go as high as N700 a litre.
However, until the government makes its statement clear the actual cost of petrol will not be determined,” he said.