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HomeEnergyPartial compliance as new fuel price regime takes off

Partial compliance as new fuel price regime takes off

There is yet to be substantial compliance by fuel marketers in most parts of the country with the directive to dispense fuel at N86 and N86.50 per litre, investigation showed yesterday.

The exception is the Federal Capital Territory (FCT) where most marketers have adjusted their metres to comply with the new pump price of N86.00 per litre for premium motor spirit (PMS) at Nigerian National Petroleum Corporation (NNPC) filling stations and N86.50 at other outlets.

NIPCO petrol stations at Kubwa, Abuja were selling at N86.50 while the NNPC stations that were opened to customers all complied with the new price of N86.00 per litre.

The Total petrol station on Arab Road, Kubwa however sold fuel for the old price of N87 per litre.

Asked why the station was yet to comply with the new price, the attendant said: “We are waiting for the Department of Petroleum Resource (DPR) to come and adjust the meters.”

The Nation observed that although some stations were under lock and key, the product was not scarce, as there were no queues.

Retail outlets of major marketers, including Mobil, Conoil and Total as well as NNPC stations visited by The Nation in Lagos, complied while most of the stations owned by independent marketers sold at N87 per litre of PMS.

The Nation’s investigation showed that NNPC retail station at Ogunnusi Road in Omole, Mobil in Agidingbi, among other in Ikeja area of Lagos State sold at N86 and N86.50 per litre while Conoil station at Oba Adejobi Street, opposite LASUTH also sold at N86.50 per litre.

Most of the independent filling stations sold at N87 and above per litre. The station managers said they still had old stock and if they should sell at the new price, they would be selling at a loss as their margins were insignificant.

They vowed that subsequent supplies they would get would be sold at the new price.

The National President of Independent Petroleum Marketers Association of Nigeria (IPMAN), Chief Chinedu Okoronkwo, said members of his association were still selling at old price because they had old stock, adding that they would revert to the new price soon.

He said: “They are selling their old stock. Market forces will compel everybody to comply. People should see the policy as a policy that will unlock the sector.

“I am sure they will change to new price once they finish the old stock and work with the new regime of President Muhammadu Buhari. I think they will begin to think out of the box to move the sector forward.”

The Department of Petroleum Resources (DPR) warned that sanction awaits defaulters.

The DPR spokesperson and Assistant Director, Public Affairs, Mrs. Dorothy Bassey, said the government had ordered total compliance and any deviant station would be appropriately punished.

She said: “We have instituted effective monitoring team in place that will go out to monitor the level of compliance with the new pump price. Non-compliant stations will be appropriately sanctioned.”

Most of the fuel stations in Ejigbo, Mushin,Ketu and Ojota  in Lagos were closed.

Residents and commercial drivers said they had to resort to black market fuel sellers to buy fuel for their business at N150 per litre.

A commercial tricycle operator plying Jakande Estate gate, Oke-Afa and and Iyana Isolo, who gave his name as Suleiman Ariyo, did not understand why the filling stations did not open for business.

Most of the petrol stations in Ibadan, the Oyo State capital, which operated yesterday, continued to sell at N120 per litre.

However,the Nigerian National Petroleum Corporation (NNPC) mega station on Ojoo/Iwo Expressway, sold the product at the official price of N86 while a notable independent marketer, BOVAS, also sold at the official price of N86.50k to motorists.

There were no queues as motorists bought the product with ease.

Transport fares have already gone up in the state.

For instance, Ojoo to Iwo Road, which was N50, is now N100. When asked about the increment, a driver who simply identified himself as ‎Morufu, said that it had to do with the high cost of fuel.

He said: “I bought mine before the price crashed. I filled my tank and you cannot prevent me from making profit during this festive period.”


Fuel marketers in Benin, Warri, Asaba, Kano, Uyo, Osogbo, Ilorin, Akure and Jos were also yet to comply with the new price regime last night.

In Edo State, most fuel stations monitored sold at N140 while the NNPC mega station on Sapele Road sold fuel at the approved pump price of N86.

Total Filling station along Akpakpava sold fuel for N86.50k.

Many of the station managers declined comments when they were asked why they were selling above pump price.

Long queues persisted in most filling stations in Kano as supply of fuel was low. Prices ranged between N110 and N115 per litre

A task force set up by the Kano State Government to ensure smooth sale of fuel directed filling stations not to sell more than N5000 worth of fuel to anyone.

The committee has also embarked on night monitoring of the sale of the product.

The manager of a filling station, who did not want his name in print, said: “As we speak, most filling stations in Kano do not have fuel in stock. How do you expect us to comply with the directive to sell fuel at N86.50 kobo per litre?”

The situation was not different in Port Harcourt, Osogbo, Akure, Jos, Uyo, Asaba and Ilorin where fuel sold well above N120 per litre where available.

A commercial driver in Port Harcourt said: “I hoped when I was leaving home this morning (yesterday) to buy fuel at N86.50k, but I have visited several stations at Mgbuoba and Aba Road axis with all of them selling at N150 and N140 respectively.

Many motorists in Ilorin travel as far as  Osun, Oyo and other neighbouring states to buy fuel in view of its scarcity in the Kwara State capital.

The state chair of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Alhaji Olanrewaju Okanlawon, said his members wee yet to switch over to the new price regime of N86.50k.

Okanlawon added that where available, members were still buying petrol at the old price.

“We will start buying the product at the new official rate before motorists in Ilorin will start enjoy the price regime from IPMAN members,” he said.

The three Nigerian National Petroleum Corporation (NNPC) mega stations in the metropolis were also put under lock and key.

There was partial implementation of the new fuel price in Jos, the Plateau State capital, with the NNPC mega station selling at N86 while other independent marketers still sold at the old price of N87 per litre.

When contacted, Mr. Douglas Ceaser, Comptroller of Jos DPR, said, “We are not aware of any new price.”

Nnamdi Okorigwe, a driver in Asaba, urged the Federal Government to ensure implementation of the new pump price, adding that many filling stations owners had resorted to hoarding fuel.

A source who spoke on behalf of independent petroleum marketers but pleaded anonymity argued that they (independent marketers) had not exhausted their old stock which they bought at exorbitant rates.

He said selling at government-approved pump price would have an adverse effect on their profits.

But the Department of Petroleum Resources (DPR) has already swung into action by sealing off a sales outlet owned by an independent petroleum marketer within Asaba metropolis.


The Nation




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