According to statements from marketers, the continued depreciation of the Nigerian Naira has led to increased costs for them, which in turn has affected pump prices of petroleum products. The current average national pump price of N500 per liter was determined using an exchange rate of N661/$. However, major oil marketers have already adjusted their prices to N492-495 in Lagos, while independent marketers in Lagos are selling at an average of N515 per liter. Outside Lagos, the pump price has exceeded N650. Marketers predict that if the exchange rate remains around N770/$, the pump price could reach N550 per liter by early next month.

Despite the need to import the product under the new market regime, oil marketers are facing challenges in securing funds due to the uncertain business environment. Some marketers have begun negotiations with banks, but the instability in the market is hindering progress. Nevertheless, efforts will be intensified to import commercial quantities of petrol, with the first deliveries expected in mid-July. Market leaders, including Ardova and 11 Plc, anticipate imports in July 2023 but note that prices may initially increase before eventually decreasing. In the meantime, major and independent marketers are likely to rely on the Nigerian National Petroleum Corporation (NNPC) to import petrol from the global market.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has confirmed that its members have not started importation and are currently in discussions with banks to secure funds. The exchange rate of the Naira has increased significantly, from over N400/$ to over N700/$, adding to the financial challenges faced by the industry.

The ex-depot price of petrol has also risen considerably, from over N400 per liter to N515 per liter, leading to further increases in pump prices. The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) clarified that there is no fixed ex-depot price, and each marketer determines its own price based on individual market dynamics.

Reports suggest that some oil marketers have taken advantage of the instability in the downstream sector to engage in sharp practices, such as pump manipulation and diversion, to maximize profits. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) recently granted licenses to six companies to commence fuel importation, including Eterna Oil Plc, Emadeb, and Asharami Energy. However, the agency did not disclose the identities of all six companies.