Tuesday, December 24, 2024 -The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) says Nigerians should expect a reduction in the pump price of the product within the week.
Last week, the Nigerian National Petroleum Company (NNPC) Limited and
the Dangote Refinery reduced the ex-depot price of petrol to N899 per litre in
Lagos. Despite the announcement, many fuel stations have continued to sell at
N1015 per litre.
While speaking on Channels TV this morning, the President of PETROAN,
Billy Gilly-Harry, said the new cost of the commodity will take effect this
week.
“But I believe from today when members start loading from both NNPC and
Dangote at this new price reduction, it will reflect in the market. But also
they’ll give kudos to some of our members, some of the leaders in PETROAN, you
know, that have done so well, especially in Abuja, for even reducing their
prices to below N1,000 before even this announcement.
So, we don’t encourage our members to try to sell products at a loss,
because our focus is to serve Nigerians. And the only way we serve Nigerians is
that we have the resources to be able to do that. That resource can only be
there if we’re making marginal profit enough to pay for the cost of money and
make sure that we continue to, you know, do business. So, never mind, you’ll
see the translation of this reduction of prices in the retail outlets hopefully
within the week.”
He said the inability of members to sell in line with the new ex-depot
price is due to some of them having old stocks that were bought at higher
prices.
“So, this reduction, if you apply it immediately, don’t forget that some
of them bought at 970, paid transportation costs and logistics that have taken
it quite high. So, by the time it gets to their retail outlets, it’s quite much
more than that. And so they must also sell at a profit – minimal marginal
profit as provisioned by the PIA. So, That’s the reason.”
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