In spite of government directives that petrol will be sold for N86.50 from the January 1, investigation by ARM has revealed that most filling stations in some parts of Lagos, especially in Badagry and its environs are selling the product well above the government price. The product is sold between N120 and N140.
Situation reports to ARM have also shown that similar trend is all across the country. The oil marketers blatantly defy the government order to sell petrol at N86.50 per litre. The Petroleum Product Pricing Regulatory Agency on Tuesday announced that retail filling stations belonging to the Nigerian National Petroleum Corporation would from Friday, January 1, 2016, sell petrol at N86 per litre, while other oil marketers would sell the product at N86.5 per litre. The PPPRA Executive Secretary, Mr. Farouk Ahmed, had stated that the reduction in the price of the commodity was due to an implementation of the revised components of the petroleum products pricing template for PMS and House Hold Kerosene.
Most filling stations are not open for business because of their unwillingness to comply with the government’s directive. According to a report in the Punch, former Treasurer, Independent Petroleum Marketers Association of Nigeria, Western Zone, Mr. Shina Amoo, said independent marketers could not comply with the directive on petrol price because they bought far higher than the approved price.
He said, “I bought at N102 per litre yesterday (Thursday) and later I bought at N94.5 per litre. So you don’t expect anybody who bought at those prices to sell a litre for N86, it is not possible. “The price will continue to come down as the supply increases. The government will not need to force anybody to reduce the price; the forces of demand and supply will determine the price.”
