Why Some Petrol Stations Are Still Selling Above N1,000 per Litre
Petroleum marketers have explained why some filling stations in Nigeria are still selling petrol above N1,000 per litre, despite recent price reductions. The primary reason is that these stations are still working through old stock purchased at the previous price of N970 per litre.
The price of petrol saw a reduction on December 19, 2024, when Dangote Refinery lowered its ex-depot price from N970 to N899.50 per litre. In response, the Nigerian National Petroleum Company (NNPC) also reduced its ex-depot price to N899 per litre, prompting many major marketers to sell petrol at prices below N1,000, such as N935, N950, and N980.
However, many filling stations are still charging over N1,000 per litre, particularly in areas like Lagos and Ogun states. This price disparity has caused some stations to experience long queues, as consumers seek out cheaper options.
Hammed Fashola, the National Vice President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), explained that marketers are unable to immediately adjust prices because they still have old stock. “It’s only when they go back to the market to purchase at the lower price that they will start selling at the new price,” Fashola said. He added that once old stock is sold out, prices will reflect the recent reductions.
Despite the price cuts, some marketers are still selling at higher rates due to the financial strain caused by the reduction. Many are making losses on the old stock and are adjusting prices as they can afford to. Fashola noted that some stations, after calculating their losses, have already begun reducing their prices.
Fashola also acknowledged the challenges of deregulation, which has led to fluctuating prices. He explained that if the price of petrol drops after a marketer purchases a new stock, they face immediate losses. This, coupled with rising bank interest rates, has put additional pressure on marketers, making it harder for them to stay afloat.
Joseph Obele, the National Publicity Secretary of the Petroleum Products Retail Outlet Owners Association of Nigeria, confirmed that many of their members have not yet purchased petrol at a reduced price. He also pointed out the price disparities between regions, with Lagos receiving cheaper petrol from NNPC than other locations like Port Harcourt, where the price remains higher due to logistical issues.
