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- Petrol marketers are counting their losses arsenic NNPC Limited joins Dangote Refinery successful slashing substance prices
- The terms warfare betwixt NNPC and Dangote Refinery is intensifying, with NNPC’s Lagos terms present N10 per litre cheaper than that of Dangote Refinery
- There are expectations of further terms changes successful the coming days, arsenic Nigeria present operates a market-driven pricing regime
Legit.ng writer Dave Ibemere has implicit a decennary of concern journalism acquisition with in-depth cognition of the Nigerian economy, stocks, and wide marketplace trends.
Petroleum marketers person raised concerns pursuing the Nigerian National Petroleum Company Limited’s (NNPCL) simplification successful the terms of Premium Motor Spirit (petrol).
The NNPC connected Easter Monday instructed its filling stations successful Lagos to set the pump terms to N880 per litre from the erstwhile terms of N910.
Source: Getty Images
While successful Abuja petrol terms dropped from N950 per litre to N935.
The determination by NNPC comes soon aft the Dangote refinery lowered its ex-depot terms from N865 to N835 per litre, prompting adjustments successful retail prices by its partners specified arsenic MRS, Heyden, Optima Energy, TechnOil and Ardova
These companies were directed to merchantability petrol astatine N890 successful Lagos, N900 successful the South West, N910 successful the South-South, and N920 successful the North East, somewhat higher than NNPC's caller rates.
Based connected NNPC's caller Lagos price, petrol volition beryllium N10 cheaper than astatine Dangote's spouse substance stations.
Marketers raised concerns connected caller petrol prices
The Punch reports that marketers are acrophobic the caller petrol terms volition exposure them to important fiscal losses, arsenic galore filling stations person yet to merchantability their aged stocks.
Hammed Fashola, the National Vice President of the Independent Marketers Association of Nigeria, who confirmed NNPC's terms adjustment, expressed concerns astir the fiscal interaction connected marketers.
He said:
"The terms simplification is simply a invited improvement for consumers, but it severely affects marketers who are present incurring important losses."We are doing our champion to negociate our losses by selling disconnected aged banal astatine reduced rates. However, the existent concern is economically challenging for us."
Source: Getty Images
When asked astir aboriginal terms projections, Fashola declined to speculate, citing volatile factors specified arsenic crude lipid prices and speech rates arsenic important determinants.
He added:
"Predicting further terms drops similar N800 oregon N700 per litre is uncertain owed to planetary economical factors affecting lipid prices and our nationalist economy."The Managing Director of Financial Derivatives Company Limited, Bismarck Rewane, believes that the terms warfare betwixt Dangote Refinery and NNPCL volition payment the user more.
He said:
"In a terms war, cipher wins; the consumers triumph successful the abbreviated run, and past eventually, the marketplace goes backmost to wherever it should be. But, astatine the extremity of the day, betwixt present and June, the terms enactment volition beryllium firmly established."PETROAN WANTS 6 months fixed prices
In a akin development, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) person condemned the persistent fluctuations successful petrol prices by the Dangote Refinery and the NNPC.
The marketers said that the changes are causing monolithic losses and discouraging concern successful the sector.
PETROAN has truthful called for a regulatory model that mandates terms stableness for astatine slightest six months.
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Source: Legit.ng
