‘We Are Losing Money’ – Marketers Lament As NNPC Drops Fuel Price To ₦880/litre

Petroleum product marketers have expressed concerns over their losses following the Nigerian National Petroleum Company Limited (NNPC) reduction of the price of Premium Motor Spirit (PMS) to ₦880 per litre in Lagos and ₦935 in Abuja.

On Easter Monday, NNPC retail outlets in Lagos adjusted their prices from ₦925 to ₦880 per litre, while those in Abuja reduced their pump price from ₦950 to ₦935. This price cut came shortly after the Dangote Refinery, a major player in the petroleum sector, lowered its ex-depot price from ₦865 to ₦835 per litre.

The $20 billion refinery also directed its partners, including MRS, Heyden, and Ardova, to adjust their prices in Lagos to ₦890 per litre, ₦900 in the South West, ₦910 in the South-South, and ₦920 in the North East. The new NNPC price in Lagos is now ₦10 lower than Dangote’s ex-depot price, sparking another price war between the two companies.

Some NNPC filling stations are still selling at the old rates, as stations are allowed to exhaust their old stock before implementing the new prices. Marketers have confirmed that NNPC Retail sent a memo to its outlets to adjust their prices, but many operators are still grappling with the financial implications.

Marketers Confirm Price Reduction and Losses

In an interview with The PUNCH, Hammed Fashola, the National Vice President of the Independent Marketers Association of Nigeria, confirmed the price reduction, noting that while the lower prices benefit the masses, marketers are bearing the brunt of the losses.

Fashola stated, “It is confirmed that NNPC has reduced PMS prices. It is now ₦880 per litre in Lagos. Some of the outlets have already adjusted, while others still have their old stock and are continuing to sell at the previous rate, such as ₦910.”

He added that independent marketers face similar challenges with old stock, which they are trying to sell off before purchasing at the new rates.

Fashola acknowledged that while fluctuations in fuel prices are part of the deregulation process, the price cuts have had a negative financial impact on marketers.

“The price reduction is a welcome development for the masses, but on the side of marketers, we are losing money. That’s just the truth,” he said.

Despite the challenges, Fashola emphasized that marketers are doing their best to manage the situation.

He said: “What we can do is try as much as possible to sell the old stock at a price that will minimize losses, then transition to the new rate when we replenish our stock.”

When asked whether petrol prices could drop further to ₦800 or even ₦700 per litre, Fashola refrained from making any predictions.

He explained, “Two major factors determine this – crude oil prices and the exchange rate. If crude oil prices fall to $50 per barrel, it would have significant implications for the economy, government revenue, and inflation, so I don’t want to predict that.”