Following last week's reduction in the ex-depot price to ₦899 per litre in Lagos by the Nigerian National Petroleum Company (NNPC) Limited and the Dangote Refinery, PETROAN confirms that the adjusted price will be implemented at the pump this week..
“But I believe from today when members start loading from both NNPC and Dangote at this new price reduction, it will reflect in the market,” the association's President Billy Gilly-Harry stated this during Monday's Sunrise Daily program on Channels Television.
“But also I’ll give kudos to some of our members, some of the leaders in PETROAN, you know, that have done so well, especially in Abuja, for even reducing their prices to below ₦1,000 before even this announcement.
“So, we don’t encourage our members to try to sell products at a loss because our focus is to serve Nigerians. And the only way we can serve Nigerians is when we have the resources to be able to do that. The resources can only be there if we’re making marginal profit enough to pay for the cost of money and make sure that we continue to do business. So, never mind, you’ll see the translation of this reduction of prices in the retail outlets hopefully within the week.”
Why New Price Is Yet To Reflect
He attributed the members' failure to meet the new ex-depot price to their existing inventory purchased at higher costs.
“So, this reduction, if you apply it immediately, don’t forget that some of them bought at ₦970, paid transportation costs and logistics that have taken it quite high,” Gilly-Harry said.
“So, by the time it gets to their retail outlets, it’s quite much more than that. And so they must also sell at a profit – minimal marginal profit as provisioned by the PIA. So, That’s the reason.”
PETROAN's leadership expressed appreciation to Dangote Refinery and NNPCL for the decrease in the price of this essential commodity.