Petroleum marketers clear air on reduction of fuel price

Petroleum product marketers and other operators in the downstream sector have refuted speculations suggesting a downward adjustment in the pump price of petrol at depot facilities.

Reports from LEADERSHIP indicate that petroleum outlets are continuing to sell at prevailing market prices, without any noticeable changes.

Checks conducted by our Correspondent at major depots in Lagos also confirm that prices have remained unchanged.

A source close to depot owners explained that such adjustments are unlikely at the moment due to the fluctuating exchange rate and the ongoing cost of hiring vessels to transport products to depot facilities, which ranges between $70,000 to $80,000 per day.

The source further highlighted that costs such as freight and port charges are still settled in dollars.

Billy Gillis-Harry, the national president of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), stated firmly that no such price adjustment has occurred.

“I have placed orders for products, and there has been no mention of any adjustment. My association continues to purchase at the previous prices,” he affirmed.

Similarly, Elder Chinedu Okoronkwo, the BOT treasurer of the Independent Petroleum Marketers Association of Nigeria (IPMAN), also dismissed the speculations, stating that prices remain unchanged for the time being.

A source within the Major Energy Marketers Association of Nigeria (MEMAN) also denied the rumors, suggesting that any potential changes might be related to arrangements between Independent Marketers and the Nigerian National Petroleum Company Limited (NNPCL), allowing direct sourcing of products.

The source explained that MEMAN’s business model involves owning depots and outlets, ensuring stability in prices from their facilities to dispensing outlets.

In contrast, Independent Marketers purchase from depots and distribute to individual filling stations, which could lead to slightly higher prices. However, this dynamic might change if they begin sourcing directly from NNPCL.