Oil marketers have said that the latest reduction in the ex- depot price of petrol to N108 per litre will not take immediate effect in the pump price at filling stations across the country.
This was made clear after the Nigerian National Petroleum Corporation as at Wednesday, announced a reduction in the ex- depot price of petrol from N113. 28 per litre to N108 per litre.
The oil marketers while addressing newsmen on the development said that the reduction was welcomed but that the reduction would not reflect on the current pump price of petrol immediately.
According to Abubakar Maigandi, who is the Vice President, Independent Petroleum Marketers Association of Nigeria, said that the marketers would have to sell their old stock at the current N125 per litre price before effecting any reduction.
“ 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. 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, he said.”
“We are waiting for the Petroleum Products Pricing Regulatory Agency (PPPRA), to give the update because they are the ones in charge of products pricing, he added.”