PETROL SELLS FOR AS LOW AS N130/LTR AS DEREGULATION TAKES EFFECT

One of the beauties of competition in market forces is the unprecedented low price and value added that comes with goods and services. Such is clearly evident in the telecommunication sector with the defunct Nitel and the General System for Mobile (GSM) communication introduced by President Obasanjo's regime. Deregulation of the sector brought us where we are today.

Following the low consumption, low turnover and stiff competition confronted by the sale of premium motor spirit (PMS) otherwise called petrol at the Federal Government fixed price of N145 per litre, there are strong indications that some marketers have begun to abandon the fixed price of the product and are now selling as low as N130 per litre.

According to Nigerian Tribune, on Sunday, quite a few marketers, especially the independent ones were now selling petrol between N130 and N143 per litre depending on the area and the marketers.

The Newspaper reported that Al Rakin, College Road Ogba, Ikeja sold at N140 (same with NNPC Stations).

In Ibadan, BOVAS, Odo ona, Dove, Ring Road, Diltop, Akala Expressway, offf New Garage all sold at N140, while a filling station at Olorunsogo, Lagos-Ibadan Expressway sold at N143 and another at Orita-Aperin sold at N140.

But all major marketers, including MRS, TOTAL, MOBIL, CONOIL, FORTE were selling at N145 per litre.

Speaking on the development, the Public Relations Officer, Independent Petroleum Marketers Association of Nigeria (IPMAN), Western Zone, Alhaji Abdul Lateef Jaiyeola, stated that:

Firstly, that is the outcome of deregulation, whereby competition will force down the price. Secondly, our members are recording low consumption and patronage from motorists.

Those who used to sell 100,000 litres (equivalent of three trucks) daily are now finding it difficult to sell 33,000 litres daily.

However, he stated that products from private depot owners were now cheaper and available than products from the Nigerian National Petroleum Corporation (NNPC).

Also speaking, the spokesman of NIPCO Plc, Alhaji Taofeek Lawal, said:

That is what deregulation brings to the sector. We sell at N134 per litre from the depot at Apapa. Any of our dealers can add N6-N7 per litre as margin after, adding transportation cost of let’s say N2 per litre. The one at Fadeyi bus stop can decide to sell below N143 per litre it is selling if he considers turnover because we deal in volume.