Fuel marketers have explained why Nigerians have not started enjoying reduced petrol prices despite announcements and confirmations by both Dangote Refinery and the Nigerian National Petroleum Company (NNPC).
It would be recalled that in a bid to provide relief for Nigerians ahead of the holiday season, Dangote Petroleum Refinery announced a price reduction for its Premium Motor Spirit (PMS) product, to ₦899.50k per litre.
The NNPC also confirmed a reduction in ex-depot prices to ₦899 per litre in Lagos.
Based on these developments, the Independent Petroleum Marketers Association of Nigeria (IPMAN) says fuel stations across the country would sell petrol to customers at the rate of ₦935 as from Monday, 23rd December.
Observations across the country, however, show the new price regime has not taken effect in many filling stations.
Speaking on the development during Monday’s edition of Channels Television’s breakfast show Sunrise Daily, the president of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gilly-Harry, said the delay in effecting the new price is because many stations are still selling the old stock bought at ₦970.
He explained that it would not be healthy for the marketers to make a loss on the product but assured that before the week runs out, the reduced price regime would take effect as filling stations get fresh supplies.
He assured that as soon as members of the organization start loading from both NNPC and Dangote at the new reduced price, it will reflect in the market.
“So, this reduction, if you apply it immediately, don’t forget that some of them bought at ₦970, paid transportation costs and logistics that have taken it quite high,” Gilly-Harry said.
“So, by the time it gets to their retail outlets, it’s quite much more than that. And so they must also sell at a profit – minimal marginal profit as provisioned by the PIA. So, That’s the reason,” the PETROAN boss said.
Gilly-Harry also commended members of PETROAN in certain locations who have already reduced fuel prices in their stations below ₦1,000.
“But I believe from today when members start loading from both NNPC and Dangote at this new price reduction, it will reflect in the market.
“But also I’ll give kudos to some of our members, some of the leaders in PETROAN, you know, that have done so well, especially in Abuja, for even reducing their prices to below ₦1,000 before even this announcement.
“So, we don’t encourage our members to try to sell products at a loss because our focus is to serve Nigerians. And the only way we can serve Nigerians is when we have the resources to be able to do that. The resources can only be there if we’re making marginal profit enough to pay for the cost of money and make sure that we continue to do business. So, never mind, you’ll see the translation of this reduction of prices in the retail outlets hopefully within the week,” he said.
