Marketers defy FG’s order on fuel price reduction, sell at higher price band

Fuel marketers across major and independent retail outlets have adopted multiple price bands in the sale of Premium Motor Spirit (PMS), popularly called petrol.

Minister of Labour and Productivity, Dr. Chris Ngige, had after meeting with officials of labour unions in Abuja last week, announced that all parties resolved that the price of petrol be reduced by N5 per litre with effect from December 14

However, findings by Daily Sun across major and independent retail outlets within the Lagos metropolis from Monday revealed the implementation of multiple price bands by marketers.

Last month, the Pipeline Products Marketing Company (PPMC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC), had announced an increase in the ex-depot price of petrol from N147 to N155 per litre.

With the increase, marketers were expected to add margins of at least N12 per litre, bringing the retail price at fuel outlets to N167 per litre.

At the Conoil retail outlet on Dayo Adeniji in Abule-Egba area, a litre of petrol sold for N160 per litre while Urbanwell, an independent marketer sold the commodity for N161 per litre.

The situation was, however, different at most NNPC retail outlet as the commodity sold for N163 per litre.

Chairman, Major Oil Marketers Association of Nigeria (MOMAN), Mr. Adetunji Oyebnaji, said the ex-depot price of the product would determine the price at which marketers would sell it at the retail outlets.

‘’We cannot change the price based on newspaper pronouncements. When we see the documentation that support that, we will begin to take action,’’ he added.

The President, Petroleum Products Retail Outlets Owners Association of Nigeria, Dr.Billiy Gillis-Harry, said the N5 reduction was not straightforward, adding that implementing it would further increase the losses being incurred by dealers due to price fluctuations since March this year.

He said: “This reduction is not clear to us and how does it fit in a regulated market? This is why we’ve always asked the government to involve marketers when fixing prices.

“Everyone should be carried along. You cannot imagine the losses which marketers will incur as a result of this.”

“We have not got any document from anybody that can be relied on regarding the reduction of petrol price,” the National Operation Controller, Independent Petroleum Marketers Association of Nigeria, Mr Mike Osatuyi, said.

Nigerians have expressed displeasure over the inability of the Federal Government to allow market forces determine the pump price of the PMS.

In separate reactions, the concerned citizens said the continuous intervention of government in the area of price fixing for fuel was inflicting more economic hardship on them.

Source: The Sun

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