Petroleum product marketers expressed concerns on Monday over their losses following a price reduction by the Nigerian National Petroleum Company Limited.
The price of Premium Motor Spirit was lowered to N880 per litre in Lagos and N935 in Abuja.
NNPC retail outlets in Lagos adjusted their pump price from N925 to N880 on Easter Monday, while those in Abuja reduced the price from N950 to N935.
The NNPC’s price cut came just one week after the Dangote refinery lowered its ex-depot price from N865 to N835 per litre.
The $20 billion refinery also directed its partners, including MRS, Heyden, and Ardova, to sell petrol at N890 per litre in Lagos, N900 in the South West, N910 in the South-South, and N920 in the North East.
The National Vice President of the Independent Marketers Association of Nigeria, Hammed Fashola, confirmed the price reduction, highlighting that filling station operators were incurring losses due to the price adjustments.
He stated that NNPC Retail had sent a memo to its outlets instructing them to implement the new prices.
“It is confirmed that NNPC has reduced PMS prices. It is now N880 per litre in Lagos. They sent messages to their retail outlets. Some of them have already put the price at N880. However, they allow those having old stock to continue selling at the old rate. Some are still selling at N910.
“Those are the ones that still have their old stock. So, the same thing applies to independent marketers. Those that have their old stock are still trying to see how they can dispense it,” he stated.
According to him, while the price cuts benefit the masses, it is the marketers who bear the financial burden.
“On the side of the masses, Nigerians are better for it. People are getting cheaper fuel now, which is good. That’s the beauty of deregulation that we are talking about. There’s nothing anybody can do about it. But marketers are the ones bearing the losses, seriously, ” he said.
Asked if there is any way to reduce the losses, he replied, “On the part of marketers, what we can do is just to try as much as possible to try and sell. We will reduce prices to a level that, at least, our losses will not be too much. So, you will be able to get rid of your old stock before you go to the market to buy at the new rate and start selling at the new rate.”
When asked if the petrol price could drop to N800 or N700 soon, Fashola declined to make any projections.
“I don’t want to predict that. You know, two major factors determine this – the crude oil price and our exchange rate. So, I don’t want to predict the price. All these things have their implications. If the crude oil comes down to something like $50 per barrel, it has its own implications for our economy. It will affect the government revenue. At the same time, inflation and all that are also there. So, I don’t want to predict that,” he stated.
