Nigerians Reduced Petrol Price
Fuel marketers have provided an explanation for the delay in the reduction of petrol prices in Nigeria, despite official announcements by both Dangote Petroleum Refinery and the Nigerian National Petroleum Company (NNPC).
In a move aimed at easing the burden on Nigerians ahead of the holiday season, Dangote Petroleum Refinery had announced a price reduction for its Premium Motor Spirit (PMS) to ₦899.50 per litre.
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EKO HOT BLOG reports that similarly, the NNPC confirmed a reduction in ex-depot prices to ₦899 per litre in Lagos.
Following these developments, the Independent Petroleum Marketers Association of Nigeria (IPMAN) declared that fuel stations across the country would begin selling petrol at ₦935 per litre starting from Monday, 23rd December.
However, observations across Nigeria show that many filling stations have yet to implement the new price regime.
Billy Gilly-Harry, the president of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), addressed this delay during Monday’s edition of Channels Television’s breakfast show, Sunrise Daily.
He explained that the delay in enforcing the new prices is due to the fact that many stations are still selling old stock, which was purchased at ₦970 per litre.
Gilly-Harry emphasized that it would not be financially viable for marketers to sell at a loss. He reassured the public that the reduced price regime would take effect soon as stations begin to receive fresh supplies at the new price.
“The reason for the delay is that some stations still have old stock that they bought at ₦970 per litre. They have also incurred transportation and logistics costs, which have increased the final price,” Gilly-Harry said.
He continued: “If they applied the new prices immediately, it would not be sustainable for them because they have already incurred those costs. Therefore, stations must ensure they make a minimal profit, as stipulated by the Petroleum Industry Act (PIA). This is why the new price has not yet reflected in all stations.”
The PETROAN president also commended some of the association’s members, particularly in Abuja, who had already reduced fuel prices to below ₦1,000 per litre, even before the official announcement.
He acknowledged these stations for their commitment to offering lower prices to Nigerians, while emphasizing that PETROAN does not encourage members to sell at a loss.
“We commend our members who have already reduced prices, especially those in Abuja who have gone as low as ₦1,000 per litre before this reduction.
But we do not encourage selling at a loss because, as marketers, we need to maintain a balance between serving Nigerians and ensuring we have the resources to continue operating effectively,” Gilly-Harry explained.
He assured the public that the price reduction would become evident across retail outlets in the coming days, as members of PETROAN begin loading fresh supplies from both the NNPC and Dangote Refinery at the new, reduced prices.
Nigerians Reduced Petrol Price
“I am confident that once our members start receiving products from NNPC and Dangote at the new price, it will be reflected at the retail level. You will see the reduction in prices across filling stations hopefully within this week,” Gilly-Harry concluded.
In summary, while the price reduction has been officially announced, the delay in implementation is primarily due to the need for fuel stations to sell off their previous stock at higher prices, as well as to ensure they maintain minimal profit margins. However, the new price regime is expected to be fully in effect by the end of the week.
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