By Yemie Adeoye
IN an apparent move to deregulate the oil sector by allowing prices of petroleum products to be controlled by prevailing market realities, the Product and Pipeline Marketing Company (PPMC) appears to have announced new increase in the prices of some oil products for the month of September.
It was gathered that the price of products like Automotive Gas Oil (AGO) and Low Pour Fuel Oil (LPFO) has increased geometrically to N 92 and N 72 per liter respectively.
An industry source who spoke to Vanguard on the condition of anonymity noted that not too long ago,barely one month after the PPMC adjusted the Ex_depot price of some petroleum products, it again increased the price of these products in line with the policy of deregulation.
Vanguard also cited a memo signed by one Mr Mohamed Abdullahi of PPMC, and addressed to all members of the Major Oil Marketers Association of Nigeria (MOMAN), Independent Petroleum Marketers Association of Nigeria (IPMAN), Chairmen of Petroleum tanker Drivers (PTD) among others on the change in price of products which took effects from September 3.AGO which is popularly called diesel has rise by N 11 with an increased from N 82 to N 92 per liter between Aug3 to Sept 3 while LPFO rose by N 9.
from N 63 to N 72 per liter respectively.The current increase in price of AGO and other products prices were likely to affect the prices of natural gas, whose prices are tied to LPFO as well the populace and the marketers which are highly dependent on diesel or AGO.
Also the increase in prices of essential products for industrial usage such as AGO, LPFO reflects an upward trend that may continue through year end especially in the face of the recent credit squeeze that have resulted from the actions of the Central Bank of Nigeriaâ€™s purported move to sanitize the banking sector, an action that has also weakened the ability of Major Marketers to import products.
It might also send wrong signals to the populace on the guest to fully deregulate the down stream sector of the petroleum industry, as cost of manufactured goods will equally jump up.