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Why marketers still sell PMS at N145 per litre

Following the federal government’s directive on the price reduction of Premium Motor Spirit (PMS) from N145 to N125 per litre some retail outlets and depots have refused to comply as they still sell at the old price.

Investigation by Nigerian NewsDirect revealed that most filling stations and depot owners are still selling stocks of PMS in their tank farm at the old exdepot price

It would be recalled that the federal government last Wednesday ordered the reduction in the exdepot  and pump price of  PMS and  by Major Oil Marketers Association of Nigeria (MOMAN) and Depots and Petroleum Products Marketers Association of Nigeria (DAPPMAN) reached an agreement with the management of Nigerian National Petroleum Corporation (NNPC) and Petroleum Products Pricing Regulatory Agency (PPPRA) to begin importation of fuel and issuance of credit notes before adjusting pump price to N125 per litre.

Prior to this, the Executive Secretary of DAPPMAN,  Mr. Olufemi Adewole in a telephone chat confirmed to Nigerian NewsDirect on Tuesday  said that  depots are selling the old stocks at the rate of N145 per litre.

He added that NNPC recognized the stock because it would be difficult for dealers to buy at the old price and sell at the N125 per litre.

According to Olufemi, “The depots are selling at the rate of N140 per litre in order  to exhaust the old stock before they start selling at the rate of N125.

“Besides the Department of Petroleum Resources (DPR) has not sanctioned any downstream companies selling PMS at N145 per litre.

“More so,  I don’t know how long it will take for marketers to exhaust their old stock but once buyers no longer patronise marketers and retailers that sell at N145,  they will have no option than  to sell at N125 per litre”

He further added that he does not think the agitation of other stakeholders to ensure that Federal Government or Pipeline Products Marketing Company (PPMC) giving credit balance is feasible.

The National Vice President of Independent Petroleum Marketers Association of Nigeria (IPMAN), Alhaji Abubakar Maigandi had said marketers were concerned about the government’s commitment to the payment of credit balance between the old and new rate.

He added that a letter had been written to the Managing  Director of PPMC on the issuance of credit balance as trucks has been queuing at depots due to price disparity.

However, investigations by NewsDirect shows that most filling stations that reduced price to N125 per litre have no fuel. When asked why all the pumps were shut, a petrol attendant explained that the company’s truck could not get PMS at depots at N120 per litre exdepot.”We shut down the filling station after exhausting the old stock of N145 per litre since we are yet to receive new stock for N125 per litre pump price,” she lamented.