Reported By Mary Udezue | Edited by: Gabriel Osa
Mr Chinedu Anyaso, Chairman of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Enugu Zone, has provided a detailed explanation for the persistent rise in petroleum product prices across Nigeria, attributing the increases to escalating costs at the point of supply rather than arbitrary pricing by marketers themselves. His comments come amid reports that Premium Motor Spirit (PMS) — commonly known as petrol — has climbed sharply in retail outlets across the Enugu, neighbouring southeastern states, and beyond, in some areas reaching between ₦950 and ₦1,000 per litre. ([turn0search5], [turn0search26])
Addressing journalists and industry stakeholders, Anyaso said the recent price increases are a direct reflection of higher landing costs at depots — particularly from major suppliers such as the Dangote Petroleum Refinery, which recently announced an uptick in its ex-depot price by roughly ₦110 per litre. He explained that the cost mark-ups originate at this stage of the supply chain and cascade through to retail outlets, meaning that independent marketers are compelled to adjust their pump rates accordingly to avoid operating at a loss. According to the latest market understanding, pumps in parts of Enugu and neighbouring states have shifted from a previous range of approximately ₦780–₦820 to near ₦950–₦980 per litre.
Anyaso emphasised that the price movement is not arbitrary or a result of collusion among marketers. He said the increase mirrors global and regional realities, including supply constraints influenced by geopolitical tensions — particularly the ongoing war in the Middle East — which he said has had a knock-on effect on crude oil production and refined product pricing. Because Nigeria relies heavily on imported refined products and products from private refiners such as Dangote, he said, market forces beyond local control play a significant role in setting landing costs that independent marketers must absorb and pass on. ([turn0search5])
The chairman’s remarks underscore a broader crisis affecting Nigeria’s downstream petroleum sector. Earlier in the year, IPMAN leaders had been vocal about the structural disadvantage faced by independent marketers, who often source fuel from private depots at varying prices compared with access to federal government-linked facilities. Historically, marketers in Enugu have also complained about limited direct access to national supply depots, which they argue would help stabilise costs if federal depots were fully functional and available.
Anyaso’s comments align with previous statements he and other IPMAN leaders have made in recent years about the need for reforms in the petroleum supply network. In 2023, for example, he advocated for greater access to federal sources and urged policymakers to expedite licence processing for private importers to increase the number of players in the market and reduce dependence on a limited set of depots. He also spoke about the impact of subsidy removal in increasing overall landing costs and weakening demand patterns, which in turn affect pricing dynamics at the pump.
Industry observers say the Enugu experience is not isolated but reflects a nationwide pattern where deregulation, global crude price volatility, refinery output levels, and the absence of coordinated import strategies have combined to produce significant price pressures. Recent reports indicate that deregulation and a shift to market-determined pricing have caused petrol prices to escalate dramatically over time, with some analyses showing a more than 400 per cent increase in retail pump prices within a span of less than two years.
Motorists and transport operators have expressed concern over the rapid escalation of fuel costs, warning that the increases will inevitably lead to higher transportation fares, rising costs of goods and services, and broader inflationary pressures across the economy. Some transport unions and civil society groups have urged government intervention to stabilise prices, either through regulatory measures, strategic fuel reserves, or incentivising domestic refining to supplement imported supplies.
Analysts note that Nigeria’s downstream petroleum sector remains vulnerable to international pricing benchmarks, foreign exchange dynamics, and logistical bottlenecks, including haulage costs from depots to retail stations. In parts of the southeast, marketers have previously reported that divergent pricing at private depots — where cost structures vary widely — contributes to uneven pump prices between neighbouring states, complicating efforts to maintain a coherent national retail price.
The issues raised by Anyaso also highlight long-standing debates about how to reform Nigeria’s petroleum sector. Proposals from marketers and energy analysts include boosting local refining capacity, revitalising non-functional state refineries, opening the import window widely to increase supply competition, and enhancing regulatory oversight to minimise exploitative pricing at private depots. Many in the sector argue that without structural improvements, price volatility will persist and continue to erode consumer purchasing power.
For motorists in Enugu and the broader southeast, the immediate impact is acute, with average petrol prices now significantly above earlier benchmarks. Commuters, commercial drivers and ordinary consumers are already adjusting to elevated transport costs and reduced disposable income as a result of the fuel price increases.
Stone Reporters note that while the government has repeatedly defended broader deregulation and currency-translated pricing as necessary for the financial sustainability of the downstream market, stakeholders such as IPMAN emphasise that both supply chain inefficiencies and global shocks must be factored into targeted policy responses to mitigate hardship for consumers without discouraging legitimate market participation.
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