Marketers under the aegis of the Independent Petroleum Marketers Association of Nigeria (IPMAN) have attributed the high disparity of fuel pump prices between some states in the north, especially Kaduna, Adamawa and Bauchi, to other states, including those in South-South and South East to cost of transportation and associated logistics.
National Publicity Secretary, IPMAN, Chinedu Ukadike, in an interview with Sunday Telegraph yesterday, also said transportation costs vary from Bauchi, Kaduna and Adamawa to that of the states in South-South and South-East.
He explained that some states in the north have started using Compressed Natural Gas (CNG) powered trucks to deliver their refined petroleum products from Lagos to their states, making their transportation cost to be less.
He lamented that some states in the South East and South-South had yet to start using CNG powered trucks to deliver their products. Consequently, many of them still incur high transportation cost, which reflects on the pump prices.
He also said that the disparity could be attributed to negotiations in the product purchases.
He added that the prices of Lagos and nearby states were less given their proximity to Dangote Refinery and depots where fuel is discharged.
Reports seen by Sunday Telegraph showed that the fuel pump price on the average in Kaduna is ₦910; Adamawa, ₦910; and Bauchi, ₦915; while Akwa Ibom is ₦955; Abia, ₦945; Bayelsa, ₦930; Benue, ₦950; Borno, ₦960; Delta, ₦930; Edo, ₦930; Rivers, ₦925; Cross River, ₦910; Imo, ₦910; Gombe, ₦965; Kano, ₦950; Nasarawa, ₦950 and Niger, ₦945. Other are Ebonyi, ₦905; Anambra, ₦890; Cross River, ₦910; Enugu, ₦890; Kwara, ₦875; Lagos, ₦865; Ogun, ₦870; Ondo, ₦905; Osun, ₦875; Oyo, ₦870; Plateau, ₦900; Sokoto, ₦955; Taraba, ₦930; Yobe, ₦965; Zamfara, ₦950 and Federal Capital Territory (FCT), Abuja, ₦890.
Ukadike said: “It is trite to note that these products are coming from Lagos. The refinery is in Lagos. So, the cost of logistics will also be added because they are from Lagos and not Rivers, Akwa Ibom or the other states with higher fuel pump prices. So, the cost will be a little bit different. Because of the logistics, the price for Lagos area and the western zone will not be more. But it will be higher in the eastern zone because trucks are coming. So, cost of transportation and other logistic will be incurred by those trucks.
“One may wonder why those of Adamawa, Kaduna and Bauchi states are not very high. This is as a result of an arrangement: It is logistics and the arrangement. Those from Bauchi, for example, are using CNG trucks. So, their transport cost will be less than trucks powered by diesel or fuel. It also depends on the negotiation they have. It depends on the logistics.
“Marketers in the South-South and South East are not yet using CNG trucks to transport refined petroleum products. But people in the North are using CNG trucks. But we are working out for those in South-East and South-South. It is a gradual process. We are working it out.”
