Petrol assumes projected deregulated price profile

• Sells above official cap in several states
• Some filling stations in Lagos, Abuja offer product below N145 a litre

The prices of Premium Motor Spirit (PMS), otherwise called petrol, have been oscillating between N139 to N165 a litre across the country, assuming the deregulated profile as projected by the Federal Government.

For instance, despite the capping of the price of at N145 per litre by the administration, the product has continued to sell at over N150.28 per litre in several states.

The National Bureau of Statistics in its May PMS Price Watch released yesterday stated that consumers were even buying the commodity at between N162 to N165 a litre in Ebonyi, Yobe, and Benue states.

However, according to the agency, the product have been selling at the official price of N145 a litre in the Federal Capital Territory, Kaduna, Lagos and Zamfara states, with some filling stations even offering it to motorists below the ceiling price in Abuja and the former federal capital city.

Indeed, The Guardian findings showed that some independent marketers now sell petrol at between N139 to N145 in Lagos.

But major marketers like Oando, Conoil, Mobil, MRS and Total were still selling at the capped price of N145 per litre.

The Executive Secretary, Major Oil Marketers Association of Nigeria, Obafemi Olawore, expressed optimism that market forces would assist to bring down the price of petrol.

Olawore said: “When I went to Abuja recently, I discovered that there were about two retail outlets around Jabi that were selling at N137 per litre. This is because they needed to offload the stock and get more.

“So, when we get to the point where everybody has the product as we are doing now, those who want to quickly turn their tanks round will choose the price they want to sell. I am very confident that in spite of the unfavourable exchange rate, we will get to the point where prices will be moving up and down.”

“I’m assuring Nigerians that pump price of petrol will soon drop as against claims that it will rise above the present band.

“Price won’t go up as long as the Nigerian National Petroleum Corporation (NNPC) is bringing in products.”

He noted that the current petrol price regime was a sign that the sector might be fully deregulated in the near future. “What has happened is price adjustment, which they called appropriate pricing. What we have now is a step towards deregulation. Deregulation is actually the end point; we are in the process and we will get there. When we get to deregulation, you will have the refining process included. As it is now, we are looking at only the petrol import side.

“So, when we get to the point where everybody has the product as we are doing now, those who want to quickly turn their tanks round will choose the price they want to sell. I am very confident that in spite of the unfavourable exchange rate, we will get to the point where prices will be moving up and down.”

The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu said that the NNPC will remain committed and focused in making petroleum products available to all nooks and crannies of Nigeria and keep Nigerians abreast of the key actions taken in the downstream petroleum sector by collaborating with citizens and other stakeholders to combat corruption, inefficiencies and service issues in the oil and gas sector.