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Fuel stations yet to sell petrol at N125, ask for more time

Fuel stations yet to sell petrol at N125, ask for more time
March 20
10:33 2020
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Independent petroleum marketers in Lagos and some other parts of the country are yet to comply with the directive of reducing the pump price of petrol to N125, checks by TheCable have shown.

At its meeting on Wednesday, the federal executive council agreed to reduce the price of petrol after crude oil price dropped to $30.

Following the directive, Mele Kyari, the managing director of Nigerian National Petroleum Corporation (NNPC), had said NNPC retail stations would comply from Thursday.

NNPC retail stations were the only stations selling petrol at N125 per litre when TheCable surveyed the Ikeja/Ojota/Maryland/Anthony area of Lagos on Thursday.

Attendants who spoke to TheCable off the record said they had not received any directive from their management to change the price on their meter.

Ascon filling station on Admiralty road, Lekki

When TheCable visited Ascon fuel station in Lekki. One of the attendants said they’ll start selling at N125 from Monday.

TheCable gathered that in Ibadan, the Oyo state capital, Bovas changed their meters on Thursday in compliance.

Bovas fuel station in Ibadan is one of the few that have adjusted their meters

A survey carried out by NAN in the northeast (Bauchi, Gombe, Adamawa, Yobe and Borno) showed that only a few independent petroleum marketers have complied while major marketers are among the defaulters.

Some marketers complained about incurring losses if they begin selling at the new price because they procured their stock at higher rates.

When contacted, Abdullahi Illiyasu, Bauchi comptroller of the Department of Petroleum Resources (DPR), said he anticipated such development.

“I know the normal complaint by the marketers is that they bought the product at a high cost and its not viable for them to dispense at a lower price,” he told NAN.

“We are talking with our headquarters in Abuja and I assure you that before the end of the week, all issues will be sorted out.

“But before then, I will advise dealers and marketers to comply with the directive of government and adjust to the new price.”

MELE KYARI: MARKET FORCES WILL COMPEL COMPLIANCE

Addressing state house correspondents, Kyari said the competition would force down the price.

“As you are aware, this announcement was made just yesterday. Our pricing at NNPC stations, which will definitely recover our cost at N125, is the decision that the NNPC has made and we have adjusted our prices in our filling stations,” he said.

“What we also know is that private marketers have bought products above this price from the market, and we know this is a transition.

“The market will balance itself and as soon as they are able to get rid of their existing stock, the forces of competition will bring everybody to the right price and I believe that it is possible to get cheaper products in few weeks to come, cheaper than what you see today.

“Be assured everybody will rush to sell even at the N125 probably nobody will agree to buy because probably you will find cheaper products and we are very sure this will happen.”

IPMAN: GIVE US SOME TIME

In a statement released on Thursday, the Independent Petroleum Marketers Association of Nigeria (IPMAN) pleaded for time to allow its members to exhaust their old stock before adjusting to the new price.

Sanusi Fari, its national president, said immediate compliance with the new price could lead to a collapse of their investment.

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NOTE: The black market rates represent the most prevalent. They could be slightly higher or lower among different sellers.
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