FOLLOWING the down ward slash of petrol by the federal government yesterday to N65 per liter, Petroleum products marketers across the country have refused to adhere to the new directive, and as still sold at N70 per litre.
A visit to filling stations in Lagos metropolis yesterday revealed that some of the marketers claimed to be unaware of governments decision, claiming not to have been properly communicated as regards the downward review of prices by the government.
Vanguard investigations revealed that at major petrol stations around the Apapa axis of Lagos pump price of petrol remains N70, while checks around Victoria Island reveal, Marina and Ikoyi areas also revealed a non-compliance with the governments directives.
Also in Jos, the Plateu state capital hopes of vehicle owners in the Plateau State capital to buy petrol at the new price of N65 a litre was however dashed yesterday as petrol dealers refused to adjust their pumps to the new price.
Most of the filling stations who sold petrol retained the N70 per litre pump price unlike the situation in cases of increase in price when they promptly adjusted their pumps.
A drive round the town showed that filling stations who opened for business insisted on selling at the old price claiming that they were yet to receive official communication on the slash in price.
Reacting to Vanguard phone enquiries an industry source who spoke on the condition of anonymity confirmed that the situation is true, and that given the condition surrounding the development the Marketers have little or no choice but to keep dispensing at the previous regulated price of N70 per liter as there are still unresolved technical issues which is begging for attention.
According to him the major marketers have already sent a top delegation to represent them in a discussion with the federal government which is said to be on-going at the time of filling this report.
“you know the government takes decision through a fiat of some sort, and they just tell you to make a change with immediate effect forgetting that there could be issues of cost build-up and other technical issues that needs to be addressed.
Another factor is that according to the release that was made available to the public yesterday, the price change is aimed at the Month of January alone which has just 7 days to end, now if that is true what happens in the following month and the subsequent months thereafter.” he queried.
A manager in one of the Mobil stations told Vanguard that they cannot act on media reports without waiting for a formal communication from their head office.
But Abdullahi, an attendant in another station said the adjustment of the pump is usually carried out by technicians from the area office of the marketing company adding that they had not received any instruction to sell at a lower price.
However, a dealer who refused to identify himself said they could not adjust prices until they have depleted current supplies which they also bought at the old price.
“We can only reduce the price with our next supply because we also paid the old rate for the current supply. To adjust the price will not make business sense because we’ll be selling at a loss”, he said.
Meanwhile further checks around Ikeja area of Lagos reveals that Total service station, Mobil and Oando are all dispensing at N70 for similalr reasons.
While they all agree that by Monday the situation may have returned to normal but they have to keep selling at the old price as the can not afford to run at a loss.
The marketers claimed to still have old stock which they can not afford to sell at aloss.
Motorists spoken to were unhappy with the development wondering why the same dealers who would quickly adjust their pumps when prices are increased are now reluctant to do same when the price was slashed.
A cab driver, Timothy Alade appealed to government to take steps to get the fuel marketers to effect the new price commending the Federal Government for the price slash.
it would be recalled that the Federal Government yesterday deregulated pricing of petrol completely, bringing it down to N65 per litre in an apparent effort to free itself of demands of petroleum products subsidy and the volatility associated with crude oil and petroleum products pricing in the international market.
A statement released by the Petroleum Products Pricing and Regulatory Agency (PPPRA), noted that the action was in line with the Agency’s statutory mandate.
The agency explained that it decided to substitute the fixed price with a recommended price in order to pass on the benefit of this drop in price to the Nigerian public.