The petrol pricing issues presently causing mayhem, may seem to be easing off at the moment, but for how long?
My findings shows that marketers are hamstrung as monopoly of product import, preference in allocation by the Nigerian National Petroleum Company (NNPC) Limited, extortion by security agencies influence arbitrary hike by multiple marketing associations in the country.
Marketers say, only deregulation of downstream oil industry will engender competition and address pump price inconsistencies among others.
Petrol still sells above N200 per liter in Lagos and other parts of the country, even after the NNCL, obliged the request of Independent Petroleum Marketers, for direct supply of products.
My findings showed that some operators, especially among the Independent marketers sell above agreed pump price of between N185 - N210 depending on the area.
A visit to some of the filling stations at Lagos-Ibadan express road revealed that some are selling above N185 per litre. At Lekki freezone areas, the price of some marketers range from N200 to N250. Only a few filling stations are selling at the price of N185 per litre, a resident in that area, Mr Tony Agbejo told me.
At Abule-Egba area of Lagos, major marketers are complying with the new fuel pump price of N185 across, Mobil, Total, ConOil, NNPC retail outlets, while most independent marketers are selling between N195 and N200.
National President of IPMAN, Elder Chinedu Okoronkwo, in a telephone chat said," I know we had an understanding with the NNPCL after we approached them, demanding for direct supply to Independent Marketers which they obliged.
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"It will not serve the interest of the country for us to disappoint Nigerians. We made the NNPCL to understand that the huge price differential was fueled by arbitrary ex-depot price, as well as other associated costs. Now Lagos and Abuja have no reason to sell above N185 per liter."
However, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), said the group has ensured strict compliance to open market operations and have been carrying out surveillance across the country to ensure its members do not engage in hoarding or smuggling of products.
National President of the Association, Dr Billy Gillis-Harry, says because of associated costs and different operating environments, prices tend to differ.
"What we have ensured is that our members operate regularly to ensure even distribution of product nationwide. But let me add, we are credit marketers who source funds from financial institutions with huge interests and sourcing and receiving products are not coming immediately," he said, adding that the important thing here is that the Association is making enormous sacrifices to ensure it supports NNPCL to provide services. However, the adjusted pump price differences is to make them remain in business.
The National President of the Nigerian Association of Road Transport Owners (NARTO), Alhaji Lawal Yusuf Othman, said full deregulation of the downstream sector and complete removal of petrol subsidy will introduce a mix of opportunities and challenges into the operating environment.
