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Petrol Price Reduction Wouldn’t Be Immediate, Says Marketers -

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News

Petrol Price Reduction Wouldn’t Be Immediate, Says Marketers

The latest reduction in the ex-depot price of petrol to N108 per litre will not translate to an immediate drop in the pump price of the commodity at filling stations, oil marketers stated on Thursday.

On Wednesday, the Nigerian National Petroleum Corporation announced a reduction in the ex-depot price of petrol from N113.28 per litre to N108 per litre.

Reacting to the development, oil marketers said that the reduction was welcomed but added that it would not immediately reflect on the current pump price of petrol.

The Vice President, Independent Petroleum Marketers Association of Nigeria, Abubakar Maigandi, said marketers would have to sell their old stock at the current N125 per litre price before effecting any reduction.

He also noted that the Petroleum Products Pricing Regulatory Agency had yet to make any statement on the cost of the commodity, adding that it was not the duty of marketers to announce a new price.

Maigandi said, “The new ex-depot price shows that there is an achievement based on the call for petrol price reduction and right now, both marketers and consumers will be happy.

“This may probably lead to a market situation where we will see a little increase in demand.”

On whether Nigerians should expect a reduction in the N125 per litre pump price soon, Maigandi replied, “The moment you get a reduction in ex-depot price, definitely there will be a corresponding reduction in pump price.

“But the reduction in pump price will not be as urgent as consumers want it to be because most of the marketers still have old stock. They have to finish their old stock before effecting a reduction in pump price.”

When asked to state the price range that the commodity will be dispensed at filling stations following the new N108 per litre ex-depot price, Maigandi said it was not the responsibility of marketers to decide the cost.

TheConscience

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