Marketers give condition for selling fuel at N123.50k
The Independent Petroleum Marketers Association (IPMAN) has insisted its members would not comply with the new N123.50k per litre price of petrol until they exhausted their old stock.
The Federal Government had, through the Petroleum Products Pricing Regulatory Agency (PPPRA), announced a further reduction of the pump price of petrol from N125 to N123.50k per litre.
In a statement in Abuja on Tuesday night, the Executive Secretary of the agency, Abdulkadir Saidu, said: “PPPRA, in line with the government approval for a monthly review of Premium Motor Spirit (PMS) pump price, hereby announces Guiding PMS pump price of N123.50 per Litre. The guiding price which becomes effective April 1, 2020, shall apply at all retail outlets nationwide for the month of April, 2020.”
Saidu added that the PPPRA and other relevant regulatory agencies would continue to monitor compliance with extant regulations for a sustainable downstream petroleum sector.
He said members of the public and all oil marketing companies should be guided accordingly.
The PPPRA had earlier on March 18 reduced the pump price of petrol from N145.00 to N125.00 due to the fall in the price of crude oil in the international market following the outbreak of the deadly coronavirus.
The agency hinted that from April 1, it would start a new pricing modulation that would reflect the global market fundamental.
But in a swift reaction, the IPMAN said its members would not comply with the new price adjustment until the old stock was exhausted.
The latest adjustment came less than two weeks after the Federal Government reduced the price from N145 to N125.
Addressing a press conference in Kano, IPMAN chairman in the state, Alhaji Bashir Ahmad Danmallam, said the association had already directed members to sell their product at N125 per litre, insisting that “until the last drop of old stock is exhausted, no one will stock in debt to dispense at N123.50.”
According to him, IPMAN is the largest employer of labour besides the Federal Government, adding that members of the union would not continue to operate at a loss.
Danmallam accused the PPPRA of trying to sabotage the Federal Government’s efforts to ensure sustained fuel supply across the country through policies that could plunge the sector into a serious crisis.
“The last time the Federal Government reduced the pump price of the product from N145 per litre to N125 per litre, our members nationwide lost over N5.5 billion as a result of the sudden reduction. We called on government for compensation or support for our members who are already in a huge loss due to the sudden reduction in fuel pump price but nothing was given to us.
“But to our surprise, the private depots owners were paid, none of our members was supported to reduce the loss we incurred. This time around, we will not sell our products until the old stocks are exhausted.
“Even though we are happy with the new development and the Federal Government should be commended for the gesture, the government should consider the fact that no sane marketer or businessman will continue operating at a loss.”