The Petroleum Products Retail Outlets Owners Association of Nigeria has stated that the recent reduction in petrol pump price will not take effect immediately unless members load the product at the new price regime.
This is contrary to the association’s position when an increase in pump price is announced.
The association however assured that the new petroleum pump price would reflect this week.
Speaking on Monday’s edition of Channels Television’s breakfast show Sunrise Daily, president of the association Billy Gilly-Harry said Nigerians will begin to feel the positive effects of pump price reduction once members start loading from both NNPC and Dangote at the new price reduction.
“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,” Gilly-Harry said.
“But also I’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 ₦1,000 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 can serve Nigerians is when we have the resources to be able to do that.”
While the pump price of the product has not been reduced in many filling stations, PETROAN said the new cost of the commodity will take effect this week.
Gilly-Harry said the inability of members to sell in line with the new 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,” he said.
“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.”
The Nigerian National Petroleum Company (NNPC) Limited and the Dangote Refinery reduced the price of petrol from N1000 to ₦899 per litre in Lagos.
