Oil marketers cannot implement immediate fuel pump price slash following the reduction of fuel ex-depot price by Dangote Refinery, the Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, and the National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, said yesterday. Dangote Petroleum Refinery had on Saturday night announced the reduction of the ex-depot price of its fuel from N950 to N890.
The Group Chief Branding and Communications Officer, Dangote Industries Limited (DIL) Anthony Chiejina, in a statement said the price adjustment is in response to favourable developments in the global energy sector and a significant decline in international crude oil prices.
But speaking in an interview with New Telegraph yesterday, Chinedu, said there are factors that make it impossible for the retail marketers to quickly effect price reductions.
He, however, said IP MAN members may reflect the price reduction in their stations within the week and commended the management of Dangote Refinery for aligning with international pricing dynamics. The IPMAN PRO also said that what was playing out clearly showed that full deregulation has become operational in the country.
He said: “It is not an immediate thing because in the chain of distribution, the product we have bought at N950 per litre is still ongoing and most of these private depots, now that Dangote has reduced price, the products we have paid the cost of N950, they will not sell it to us at the current price and refund us, they will also expect us to take it at N950.
But if any time there is an increase, they would hoard our supplies paid for at the old rate and ensure that we make up. That is the problem we are facing and that is the cry of independent marketers. We are not secured.
That is why we are still asking for this ‘Energy Bank’ which can buffer some of these irregularities in the oil and gas industry in terms of distribution chain. “The factors of demand and supply normally determine price. As we continue to move, those who will be able to buy at this new price will cushion the effect of the old price.
Hopefully as quickly as possible, once we start buying at the new price, we will also adjust the prices in the petrol stations. Hopefully, we will implement the new price within the week.” Efforts to get the response of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) proved abortive as the phone number of the Executive Secretary, DAPPMAN, Mr. Olufemi Adewole, indicated it was switched off.
He also had yet to respond to a text message sent to him on the subject matter as of press time. But Gillis-Harry speaking with Arise News (TV), yesterday also explained that the marketers have old stock of fuel which they bought at a higher price and so needed to sell off them and recoup their money they used to buy the old stock.
He said: “Price changes are not usually instantly applicable, but ultimately it will apply. You can’t see it immediately, because we have already bought products. We have already purchased different kinds of products in our retail outlets at the price it was prior to the changes made this evening.”
The PETROAN President, however, urged the members of the association to reduce their fuel pump price when they buy new stock at the reduced price. He also assured of PETROAN’s commitment to collaborating with the Dangote refinery and other stakeholders to ensure fair pricing and sustainability in the downstream sector.
