[size=14pt]Subsidy: Price of Petrol Drops at Depots[/size]
17 Oct 2011
By Ejiofor Alike

[img]http://serving.thisdaylive.com/0bef99d6-acf5-4e2c-9779-8fa02ba3fcd4/assets/1502-Minister-of-Petroleum,-Mrs.-Diezani-Allison-Madueke.jpg?maxwidth=400&maxheight=540[/img]
Petroleum Minister, Mrs Dizeani Allison Madueke

Contrary to fears expressed in some quarters that the planned removal of subsidy could trigger crisis in the downstream and also encourage marketers to hoard petrol and hike the price, investigation has revealed that the price has actually gone down at the depots.

It was feared that the government’s announcement of its plan to remove subsidy next year could trigger price hike as marketers could embark on rationing supply to take advantage of the impending deregulation.

But THISDAY gathered at the weekend that the ex-depot price of PMS in most private depots in Lagos has dropped marginally but no filling station was yet selling below the official pump price of N65 per litre.

It was also learnt that the Nigerian National Petroleum Corporation (NNPC) was still selling its official ex-depot price of N55.60 per litre, despite the price drop in privately-owned depots.

According to investigation, most private marketers were selling at an average ex-depot price of between N54.50 and N53.80 per litre. Some of the private marketers include Integrated Oil and Gas Limited, Eterna Oil, NIPCO Plc and MRS.

This development was contrary to the initial fears that marketers could hoard products and wait for the government to implement full regulations in January 2012, so as to sell at market-determined price.

Marketers, who spoke to THISDAY at the weekend, said none of them would indulge in hoarding because there was too much volume of products in the system. One the marketers stated that they were even reducing the ex-depot price to ensure that they reduce the volume of products in their depots.

“Too much volume of products is chasing few users. There is so much volume of products in the system and the only marketing strategy to reduce it is to crash down the price in the depot. This may even affect the price at the filling stations,” he said.

Executive Secretary of Major Oil Marketers Association of Nigerian (MOMAN), Mr. Obafemi Olawore, also confirmed that there were products everywhere and assured that marketers would not hoard products.

Olawore noted that the major marketers had never been involved in hoarding petroleum products, even during the period of scarcity and blamed the incidence of hoarding on few unscrupulous dealers. “You should know the difference between a dealer and a marketer,” he said.

President Goodluck Jonathan had stated that the Federal Government was keen on the removal of petrol subsidy and gave assurance that proceeds from it would be used to provide critical infrastructure in the country.

He also assured that safety nets would be put in place to ease the impact of the policy on the masses. The removal of the petroleum subsidy is expected to save the government N1.2 trillion in expenses.

http://www.thisdaylive.com/articles/subsidy-price-of-petrol-drops-at-depots/100686/

The sad fact is that some folk don't know that they are paying for the upkeep of the likes of IBB and other corrupt souls.
These ex-generals have written the siphoning of national resources into the law. It is corruption made legal and the poorest pay for it.

I subscribed to NL bc I felt it was a medium 4 dispassionate discuss of issues,but its obvious that some people are so biased and deceitful in there views that it becomes annoying.
What is d purpose of we being told that impending fuel subsidy removal has brought down d pump price when it will definitely shoot up by several notches.
The greater project shd b d survival & progress of d nigerian state,not any deceitful distortion of facts to suit a few who won't occupy office for ever.

^^ Well said

doctokwus:

I subscribed to NL bc I felt it was a medium 4 dispassionate discuss of issues,but its obvious that some people are so biased and deceitful in there views that it becomes annoying.
What is d purpose of we being told that impending fuel subsidy removal has brought down d pump price when it will definitely shoot up by several notches.
The greater project shd b d survival & progress of d nigerian state,not any deceitful distortion of facts to suit a few who won't occupy office for ever.

That was pork beaf for u there. He is a well-known GEJ apologist on NL, nobody takes him serious here again.

Learn to ignore him next time, he can be very irritating

tolu001:

That was pork beaf for u there. He is a well-known GEJ apologist on NL, nobody takes him serious here again.

Learn to ignore him next time, he can be very irritating

Pork? Lol!
Each time you folk ignore the issue at hand to attack personalities, you expose the smallness of your minds. Truth might "irritate" you, but is the topic that difficult?

Beaf, you like trinckling your fancy all the time. So now you want us to believe that after the removal of subsidy price of fuel will drop? Muhahaha Who are you planning to deceive? Certainly not me.

Bros, spin it another angle, maybe your mumuness will not show much.