The Nigerian National Petroleum Corporation has increased the price of kerosene three times between May and so far this month, raising the cost of the commodity by about N40 per litre, an investigation by our correspondent has revealed.

It was found out that despite the price hike, the corporation through its subsidiary, the Pipelines and Product Marketing Company, had not been supplying the commodity to marketers.


Many marketers of the product, popularly known as Dual Purpose Kerosene, said they had not received what they paid for since November 2017, despite making additional payments to the PPMC following the price increases.

Findings by our correspondent in Abuja on Tuesday showed that some independent oil marketers paid N4.785m each for 33,000 litres of DPK in November 2017, which translates to N145 per litre, but had not been supplied the commodity till date.


Some of them paid an additional sum of N165,000 each in March 2018 in order to pick up the product, bringing the cost of the commodity to N150 per litre. But they still could not get the product.

On May 3 this year, the PPMC issued a circular with reference number, PPMC/CSD/UPM/0034, announcing a further increase in the DPK price and raised the cost to N179.83 per litre for ex-depot Lagos/Oghara, while coastal price ex-refinery was put at N168.94 per litre.


Additional payments of N984,390 and N335,610 were made on May 9 and June 6 this year by some of the affected marketers for the same product that was initially paid for in November 2017. This brought the cost of kerosene to about N190 per litre and made it the third time the cost of the product was increased within two months.

It was learnt on Tuesday in Abuja that the concerned independent marketers had yet to take delivery of their products from the PPMC despite the increases in price and the payments they had made so far.

They stated that at the point of picking up the product, they often got new information from the PPMC announcing another price hike and mandating them to make additional payments before taking delivery.

One of the affected marketers, who pleaded not to be named for fear of being victimised, said, “In the last two months, the NNPC has increased the cost of DPK three times. The cumulative increase on about four occasions is close to N1.5m. The price of 33,000 litres of DPK, as of last year November, was N4.785m, which was about N145 per litre. When you add the additional N1.5m, this raises the price per litre to about N190.

“The annoying part is that they have refused to make the product available for the past seven months. Anytime you’re to receive what you’ve already paid for as agreed, they will tell you that you can’t because the price has increased again.

“So, in the past two months, the NNPC, through its subsidiary, the PPMC, has increased the DPK price three or four times. We see this as a fraud and it is alarming!”

Another independent marketer argued that the increase in crude oil price should not be used as a reason to prevent dealers from accessing their products.

He stressed that the products that were paid for should be supplied first, adding that the corporation was free to inform marketers of a price increase in the subsequent round of purchase if need be.

He added, “We know the price of crude has been appreciating but that does not mean you should hold on to the products we’ve paid for. Release the ones we’ve paid for and inform dealers that there will be a price hike in the next round of purchase.

“Stop using the crude price instability as a yardstick to defraud independent marketers partly because of the dysfunctional nature of the Independent Petroleum Marketers Association of Nigeria. This is not fair and should not be happening under a government that is perceived to be fighting corruption.”

When contacted, the Group General Manager, Group Public Affairs Division, NNPC, Ndu Ughamadu, told our correspondent that kerosene supply was now coming from the country’s refineries on first pay, first load basis, because imported DPK was expensive and that the corporation’s representatives had been directed to stop collecting money from marketers.

He said, “We are supplying the market with DPK mainly from the refineries as imported volume is expensive. We have maintained a regime of first pay, first load from such refineries and have directed our sales reps not to take further payment for such product until old tickets are supplied.

“As you know, the marketers like to pay in advance for DPK and AGO (diesel), being their preferred products, and when the refineries are down, they start complaining.”


Source: http://punchng.com/nnpc-raises-kerosene-price-thrice-in-two-months/

...& nobodi dey talk

Buhari is a certified harbinger of hardship and bad governance....


The man is an economic calamitous entity

Woe to anyone who supports such idiot

As unstable as a preeq.
A new Nigeria we seek.

God punish Buhari and his goons!

Why can't NLC PROTEST This?

zombieHUNTER:
Buhari is a certified harbinger of hardship and bad governance....


The man is an economic calamitous entity

Woe to anyone who supports such idiot

post=68433566:
Something must be done to curb all these unnecessary increment.
Let the common man cook also and eat in peace!

So you want buisness people to sell kerosene at a loss?

The reason why our downstream sector is in a mess is because government controls prices.


And as a result, people cannot make profits as they should..leading to scams, lack of money to fix refienreis, etc..

Better we deregulate the whole thing...and allow marketers sell kerosene at the price they want to sell it. Prices will shoot up, but....investment will flow in,and prices will eventually fall because competition.

And all those subsidy scams will stop...because who wants to be doing scam when you can earn much more under deregulation?

Note: Deregulation , to anyone that is interested, means that government hands off pricing kerosene, petrol...and allows marketers set prices as they want...so Buhari's price increases are not deregulation at all...since govt is still determining the price.

Dividends of buhari's destructive govt. This is why the useless govt is using June 12 to hide their gross incompetence.

Rickyzagy:
Why can't NLC PROTEST This?

NLC is a dead organization.
Nigerian workers better formed their own union and forget about NLC.

NNPC is as confused and corrupt as Buhari and APC and even PDP.

Sai Baba

It is called Change, that is what they promised us.

Buhari is busy presenting awards, to him award are better than good governance.

post=68433566:
Something must be done to curb all these unnecessary increment.
Let the common man cook also and eat in peace!

query your petroleum minister.

N280 d last tyme i bought, & petrol no reach N200. Na poor ppl like suffer??

many are no more using this product but resolved in the use of domestic gas and why the hike in price and scarcity of the product?

Sah Baba! Chanji! Confused clowns

One word......."BUHARI"

Do we still have Labour Union in this Hell hole ?

they've increased everything increaseable but the minimum wage of poor workers

What works elsewhere doesn't work in Nigeria so stop with the analysis.

What will surely happen is that the majors will agree on a very high price range and each will sell within that range.

Most people think oil business is like gsm so they erroneously believe that prices will fall like gsm. Both industries have different DNA

theoldpretender:



So you want buisness people to sell kerosene at a loss?

The reason why our downstream sector is in a mess is because government controls prices.


And as a result, people cannot make profits as they should..leading to scams, lack of money to fix refienreis, etc..

Better we deregulate the whole thing...and allow marketers sell kerosene at the price they want to sell it. Prices will shoot up, but....investment will flow in,and prices will eventually fall because competition.

And all those subsidy scams will stop...because who wants to be doing scam when you can earn much more under deregulation?

zombieHUNTER:
Buhari is a certified harbinger of hardship and bad governance....


The man is an economic calamitous entity

Woe to anyone who supports such idiot

come on,we know buhari is not doing a good job but the focus should not be on him only.

Where is the minister for petroleum now... The Mumu is busy with June 12

Interesting...

Read about The NNPC GMD’s N25 Billion Saga

The only product poor people dey use dey no wan poor people cook in peace again. Why kerosene. Because they know the poor do not have a choice and do not have a voice. Which rich man uses kerosene to cook.
Our petroleum minister is not even aware.

no be who get food to cook dey find kerosene

post=68433566:
Something must be done to curb all these unnecessary increment.
Let the common man cook also and eat in peace!

Are you okay?
Did someone hack your account
Are you just realising that Buhari’s mission is to steal, to kill and to bury the long suffering people of Nigeria?

nwakibie3:
no be who get food to cook dey find kerosene

Abi o.
How much is rice today compared to 2015?
How many states are owing salaries today compared to 2015?
Buhari is a monumental error of gargantuan proportions that must be corrected in 2019!