• Oil & Gas - News
  • Updated: December 09, 2020

Oil Marketers Kick Against N5 Reduction In Petrol Price

 Oil Marketers Kick Against N5 Reduction In Petrol Price

Amid the current market realities, Nigerian oil marketers have kicked against the N5 reduction in petrol pump price announced on Tuesday by the Federal Government of Nigeria.

AllNews learned that Dr. Chris Ngige, the Minister of Labour and Employment announced the petrol price cut at the end of a meeting with labour leaders which began around 9 pm on Monday and ended at 1:30 am on Tuesday.

He said, “Our discussion was fruitful and the Nigerian National Petroleum Corporation, which is the major importer and marketers of petroleum products, and customers have agreed that there will be a slide down of the pump price of PMS and that the price cut will get us about N5 per litre and that the price cut will take effect from next Monday, a week today.” 

READ ALSO: Petrol Subsidy: Oil Marketers Seek Unstaggered Dollar Rate

Reacting to this, one of the top marketer officers said the price decrease had not been communicated to them, adding that they only read media reports that the government had reached an agreement with the organized labour to reduce petrol price by about N5 per litre.

Meanwhile, the National Operation Controller, Independent Petroleum Marketers Association of Nigeria, Mike Osatuyi said given the recent increase in global oil prices and the devaluation of the naira, “petrol price of N162 cannot work, except we are going back to the subsidy.”

According to him, “The government said it had deregulated; so, it is not possible to sell petrol at N162 on December 14. If you ask anybody now in the industry, they will tell you the price at which they can sell is about N170 to N180.

“The minister of labour does not have the power to determine the price of petrol. Even the President can only do that if we go back to subsidy.”

The National President, Petroleum Products Retail Outlets Owners Association of Nigeria, Dr Billy Gillis-Harry, said the interference by the government in petrol pricing had continued to defeat the purpose of deregulation.

The Minister of State for Petroleum Resources, Chief Timipre Sylva, had said in September that the Federal Government had stepped back in fixing the price of petrol, adding that market forces and crude oil price would determine the cost of the product.

Gillis-Harry said marketers had lost millions of naira as a result of the frequent price adjustments. “We have no circular to confirm that price adjustment, and as far as we are concerned, we cannot say it will be implemented until we get an official communication about it,” he added.

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