Marketers Speak on Reason Filling Stations Are Yet to Bring Down Petrol Price After Dangote’s Slash
- Most filling station pumps have not been updated to reflect the ex-depot price of petrol, which was lowered by Dangote Refinery
- This comes after the refinery declared that over the weekend, the ex-depot price of gasoline would be lowered from N950 to N890
- PETROAN chairman stated that filling stations are still selling the older supply and might not be able to instantly reduce their pump pricing
Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
The majority of filling stations' pumps have not yet reflected the ex-depot price of premium motor spirit (PMS) or gasoline that was reduced by Dangote Refinery.
Source: Getty Images
This comes after the refinery announced lowering the ex-depot price of gasoline from N950 to N890 over the weekend
Dangote Refinery stated that the action was taken in reaction to favourable events in the global energy industry and a notable drop in the price of crude oil on a worldwide scale.
However, an investigation conducted by The Nation across the city of Lagos show that almost all gas stations have not reflected the anticipated decrease in pump prices. Yesterday, the majority of large and independent sellers continued to sell at N970 and N990 per liter.
The media outlet reported that it may take some time for the effects of this Dangote price cut to become apparent. This is because the majority of gas stations are reportedly still have the old stock that was bought at a premium. As a result, their company will lose money if they sell that at the anticipated lower pricing.
According to Billy Gillis-Harris, Chairman of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), filling stations may not be able to immediately lower their pump prices because they are still selling the older stock that they purchased at a higher price, even though the Dangote refinery may have lowered the ex-depot price.
“You can’t see it immediately, because we have already bought products at higher price. We’ve already purchased different kinds of products that is in our retail outlet now at the price which it was prior to the price change. So the moment we lose N60 in that transaction, we are out of business; so we have to keep that product,” Gillis-Harris said.
According to the head of PETROAN, the association is now collaborating closely with the Dangote refinery and MRS, a significant retailer. He promised that this collaboration would help guarantee that members' retail outlets sell products at a consistent price and that petroleum products are accessible throughout the nation.
He noted that Nigeria is improving at maintaining fuel supplies throughout the nation, adding that fuel imports may be reduced for Nigeria when local refineries begin to operate.
Two refineries in Nigeria resume petrol sale
Legit.ng reported that the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) has announced that its members have commenced the lifting of Premium Motor Spirit (PMS), popularly known as petrol, from the Port Harcourt and Warri refineries.
This was disclosed by Joseph Obele, spokesperson for PETROAN in a statement released over the weekend.
According to PETROAN, the two refineries, owned by the Nigerian National Petroleum Company Limited (NNPCL), are now operational and supplying petroleum products to their association.
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Source: Legit.ng
