The reason why many filling stations across the country have refused to comply with the Federal Government’s directive to sell a litre of petrol for N86.50 as against the old pump price of N87 is because most of them had stockpiled the product in anticipation of a likely price
increase by the government.
Compliance by filling station owners with the new pump
price of N86.50 for a litre of petrol has not been great
across the country even though the Department of
Petroleum Resources, the regulator of the downstream
petroleum sector, has vowed to punish defaulters.
In some instances, the filling station owners and managers
have become more daring, displaying new prices above the
stipulated maximum on their petrol dispensing pumps.
One of our correspondent actually bought petrol at a filling
station along Gbongan Road, Osogbo, the Osun State
capital for N110 per litre on Monday. The price was proudly
displayed on the digital dispensing machine instead of the
practice before of displaying the regulated price of N87 per
litre, but the attendants would inform the buyer of a higher
price and the difference would be calculated based on the
volume bought.
When asked why the station’s management was bold to
display N110 as the pump price, a female attendant simply
said that was the instruction given by the owners.
The PPPRA had on Tuesday, December 29, 2015,
announced that retail filling stations belonging to the
Nigerian National Petroleum Corporation would from Friday,
January 1, 2016, sell petrol at N86 per litre, while other
marketers would sell the product for N86.5 per litre.
In Jos, the Plateau State capital, most major marketers are
still selling at N87 per litre despite the N0.50 reduction in
the fuel price. Only the NNPC mega stations have adjusted
their pump price to the N86 stipulated by the PPPRA.
Some of the marketers told one of our correspondents that
they could not afford to sell below that as they still had old
stock.
One of the attendants, who simply identified himself as
Ahmed, said the inconsistency in the Federal Government’s
pronouncement prompted some marketers to hoard the
product in anticipation of a price increase later.
“Our station discharged a full tanker before the New Year,
but we were afraid of what the new price will be. However,
we are for now sticking to the old price because we are still
having our old stock,” he explained.
In Anambra State, a litre of petrol sold for N140 on the
average on Monday as many filling station owners
pretended not to have heard about the new price regime.
An attendant at a filling station in Awka said, “I don’t know
about any new price for petrol. We sell a litre here for
N140.”
A manager at a filling station, who pleaded anonymity said,
“The new price you are talking about may be for
government filling stations like those belonging to the NNPC and not for private filling stations.
“Besides, what we have here is old stock. We didn’t even
buy at that price you are talking about.”
Filling stations in Enugu State have yet to comply with the
Federal Government’s directive on the new pump price of
petrol.
One of our correspondents, who monitored the situation on
Sunday and Monday, observed that the product was being
sold for between N120 and N150 per litre in different parts
of the state.
In Oyo State, one of our correspondents found out that only
a few independent marketers had the product and they sold
a litre at prices ranging between N100 and N130.
Some of the independent marketers, who spoke on the
development, said that they purchased the product at an
inflated amount in Lagos.
“We are aware of the government’s directive but the truth is
that we cannot sell at the government price when we
purchased the product above N100 per litre in Lagos. Look
around Ibadan and you will see that only independent
marketers are selling the product. The major marketers
cannot because they cannot buy at a high cost and sell at a
loss,” he station manager of an independent filling station in Mokola area of Ibadan said.
In Niger State, independent marketers have not complied
with the N86.50 per litre price regime as one of our
correspondents who went round Minna, the state capital, on Monday observed that filling stations were selling the
product at the old rate of N87 per litre.
The state Controller, DPR, Mr. Abdullahi Jankara, however,
said he had not received any directive from the Federal
Government on the new fuel price.
Filling stations in Uyo metropolis sold the product for N130
per litre on Sunday and Monday even as many of them did
not open for business.
The only filling station seen selling petrol at N86 per litre
was the NNPC mega station on Ikot Ekpene Road, Uyo.
A former Chairman of the Independent Petroleum Marketers Association of Nigeria, Mr. Victor Eteafia, said the downstream sector of the economy was facing a crisis.
In major cities in Ogun State, a litre of petrol was still sold
for between N100 and N130 on Sunday and Monday.
In Rivers State, the product is selling for between N130 and
N140 per litre as against the Federal Government’s new
price regime of N86.5.
At Romans Filling Station located on Ada George Road,
petrol has been selling for N130 per litre in the past one
week. The filling station had been dispensing the product
for N140 per litre before Christmas.
Also in Kogi State, it was gathered that the major marketers
were selling the product at N87 per litre while other
marketers still sell as high as N120 per litre.
The Kwara State Chairman, Independent Petroleum
Marketers Association, Mr. Olanrewaju Okanlawon, said
members of the body bought their current petrol stock at
the old price and would comply as soon as they start buyingit at the new ex-depot price.
A former Treasurer of the Independent Petroleum Marketers
Association of Nigeria, Western Zone, Mr. Shina Amoo, told
one of our correspondents in Osogbo that independent
marketers could not comply with the directive on the new
petrol price because they bought the product higher than
the approved price.
He said, “I bought the product for N102 per litre on
Thursday and later I bought it at N94.5 per litre. So, you
don’t expect anybody who bought at those prices to sell a
litre for N86; it is not possible.
“The price will continue to come down as supply increases.
Government will not need to force anybody to reduce the
price; the forces of demand and supply will determine the
price.”
When contacted for comment on why some filling stations
were not complying with the new pump price regime, the
National President, Independent Petroleum Marketers
Association of Nigeria, Mr. Chinedu Okoronkwo, said he
expected all outlets to comply before the end of this week.
He stated that some of the filling stations still had old
stocks, adding that they would have to adjust to the new
price when they finish selling those stocks.
When asked if the government was still paying the
marketers the bridging claims, Okoronkwo said, “There is
still bridging fund. We have not been informed of any
change.”
The Federal Government, through the Petroleum
Equalisation Fund, pays bridging claims to the marketers to
ensure that there is uniform pricing system across the
country and ensure that each marketing company complies
with the laws regarding the management of the
transportation equalisation process.
The Deputy Manager, Communications, DPR, Mr. George
Ene-Ita, said, “If they (filling station owners) don’t comply,
we will sanction them; either we shut down the stations or
fine them. Monitoring is a routine thing. We have a standing
monitoring and compliance unit in the DPR. It is a routine
procedure; it never stops.
“It is not just to monitor and enforce the government-
regulated prices, but also to monitor and enforce
compliance with all regulatory issues concerning the
downstream. And that is going on; we are ensuring that
every marketer and every facility owner complies with the
new official pump price.
Informed that some marketers were selling at higher prices
because they still had old stock, Ene-Ita said, “That does
not concern us. Government did not stipulate two pump
prices, one for old stock and one for new stock.” www.punchng.com/marketers-justify-selling-petrol-above-n86-50/ |
