Former MOMAN chair dismisses N700/litre petrol price speculation as baseless

Tunji Oyebanji, a former chairman of the Major Oil Marketers Association of Nigeria (MOMAN), has urged Nigerians and marketers not to engage in speculations regarding the pump price of petrol.

In an interview with the News Agency of Nigeria in Lagos on Friday, Oyebanji emphasized that in a deregulated market, prices would be determined by market forces.

He considered it unnecessary speculation to project that petrol would sell for N700 per litre.

Oyebanji’s response came after a recent statement by Mike Osatuyi, the National Controller of Operations for the Independent Petroleum Marketers Association of Nigeria, who suggested that the pump price of petrol could reach N700 per litre, particularly in the Northern region, once independent marketers began importing the product from July.

Oyebanji stressed that no marketer could accurately predict the pump price until the importation of the product commenced.

As the Managing Director of 11 Plc, Oyebanji explained, “It depends on the exchange rate. If those factors are changing, prices of those products will also change. Once you are in a deregulated environment, that is how it is, especially when you are importing the product. I cannot predict the price of petrol for now until we import the product.”

He further stated, “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 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.”

Oyebanji suggested that people would need to adjust their spending and prioritize their choices accordingly. He acknowledged that the price could fluctuate depending on the exchange rate, which would foster healthy competition among marketers.

In response to the speculation, Osatuyi clarified that the fuel being sold by marketers such as DAPPMAN, IPMAN, and MOMAN was from old stock. He explained, “Nobody has imported new products from the new foreign exchange regime and the new deregulation. Marketers are just planning to import, so everybody is in a transition pricing to the new regime.”