News
Why some stations sell petrol above N1,000/litre — Marketers
Marketers of petroleum products say filling stations still sell Premium Motor Spirit, otherwise called petrol, above N1,000 per litre because they have yet to sell out the old stock.
According to them, the old stock of PMS was bought at the rate of N970 and many still have the product in their tanks.
The PUNCH reported that on December 19, 2024, the Dangote refinery slashed the ex-depot price of its petrol from N970 to N899.50 per litre.
Similarly, the Dangote refinery announced its partnership with MRS Petrol station to sell petrol from its retail outlets nationwide at N935 per litre.
The President of Dangote Industries Limited, Aliko Dangote, clarified that the reduction in the price of PMS was primarily driven by the complex dynamics of market forces.
This generated what some called a price war in the downstream sector, forcing the Nigerian National Petroleum Company Limited to reduce its ex-depot price to N899 per litre.
Since the price cuts, NNPC retail outlets in Lagos and its environs have adjusted their pumps to N925/litre.
Similarly, some major marketers were forced to sell petrol below N1,000 a litre. Some sell at N990, N980, N950 or N935.
However, our correspondent observed that despite the price reduction, many filling stations are still selling a litre of petrol above N1,000.
In many filling stations in Lagos, Ogun and many other states, the price still goes for as high as N1,070 per litre.
Although some have effected some changes, they still sell around N1,050, N1,030, N1,010 or N1,000 per litre as of Wednesday.
The price disparity between these filling stations and those owned by major marketers has been blamed for the queues in the latter.
Speaking in an interview with our correspondent, the National Vice President of the Independent Petroleum Marketers Association of Nigeria, Hammed Fashola, said the marketers were still struggling with the old stock they bought at the old price.
Fashola maintained that the reduction cannot just take effect immediately.
“Some of our members have old stocks. So, there’s no way they can just start immediately. It’s only when they go back to the market to purchase at the lower price, then they will start selling at the new price. If you look around, as of yesterday, I see many of our members have come down to N940 or N935 in Lagos. So, by next week, you will see more of them. Once they finish with their old stock, they will start selling at the reduced rate,” Fashola stated.
According to him, marketers are aware of the competition out there and no one wants to be left behind.
“You cannot deceive yourself. This is competition. This is what we have been asking for. So, if you like, put your fuel at N1,500, nobody will buy it. So, it’s not deliberate. If you are still seeing a few of us that are still selling at N1,000, it is because of the old stock. Once they finish with their old stocks, they will start selling at the lower price,” he emphasised.
When Fashola was reminded that the filling stations would not have retained the old price if the price had gone up, he replied, “Well, as a businessman, your purpose is to remain in the business. So, if you make a huge loss, you can go down. That’s just it. It is natural.”
Nonetheless, the IPMAN Vice President maintained that a lot of marketers are now making losses due to the price reduction.
“Even at that, some of us still make losses. I can tell you that some people when their stock gets to a level that they can bear the loss, they will reduce their prices. I can take myself an example. Some of my stations yesterday, when we looked at our stock, maybe we had 20,000 litres in some of our stations, we calculated our losses and I thought it was minimal. So, we reduced our prices despite being the old stock.
“That’s the truth. That’s because people are running away. That’s the reality. Many of our members are doing that too. When they calculate the loss and they can bear this loss, they fix a new price,” he stated.
While acknowledging the positive impacts of deregulation, Fashola noted that there is also a negative effect to it.
“The negative effect of deregulation is like what we are just discussing. If you buy a product at maybe, N1,000 today, and tomorrow, the price goes down to N950. You’ve already recorded a N50 loss. You buy a product today from a depot and the following day, the price goes down. Have you finished that stock? It’s not possible. That is the negative aspect of it. Therefore, you have to be careful. You have to go with information before you make your purchases, even before you make your imports.
“And there are some factors you have to consider. That is the exchange rate and the crude oil price. Those are the major factors that determine the price of petroleum products. So, you have to be futuristic. You have to be able to project very well before you make your move. Otherwise, you enter into trouble. That is one of the negative aspects of deregulation. But, we have to cope with it,” he explained.
The marketer lamented that those in the business now face financial challenges following the removal of fuel subsidies.
As the price of PMS rose from N200 to N1,000 per litre, Fashola disclosed that marketers are finding it difficult to do business, especially as the interest rate rises monthly in banks.
“When you go to the bank, you know the interest you will pay. So, which way? We need more money to remain in business–more money, but with a little margin. This is really impacting on us. But we all call for deregulation and we have to live by it. We don’t have an option,” he added.
Fashola advised marketers to get themselves prepared for the challenges ahead, the reality, and the new trend, saying “We cannot be doing our business the way we used to do it before.”
On his part, the National Publicity Secretary of the Petroleum Products Retail Outlet Owners Association of Nigeria, Joseph Obele, said no member of the association has bought fuel at the reduced rate.
“None of our members has bought at the reduced rate at the moment,” Obele said, justifying why some filling stations still sell PMS at a higher rate.
He added that there was a wide disparity between the price of PMS in Lagos and Port Harcourt or other places far from Lagos.
According to him, the NNPC sells PMS at N899 in Lagos and N970 in Port Harcourt due to logistics.
Credit: PUNCH
News
Reps Raises Alarm Over Poor Capital Budget Implementation
By Gloria Ikibah
The House of Representatives has expressed concern over the low implementation rate of the capital component of the 2024 budget.
Thr Chairman Public Accounts Committee (PAC), Rep. Bamidele Salam, during an interactive session with the Accountant General of the Federation, Dr. Shakirat Madein, on Wednesday, revealed that only 25 percent of the capital budget has been implemented.
The chairman who stated that the underperformance hinders economic growth and development, urged the AGF to expedite the submission of the 2022 Consolidated Financial Statement to the Auditor General in line with constitutional provisions.
Rep. Salam lamented Nigeria’s lag in timely audit report submissions compared to Kenya, Ghana, and Rwanda, attributing this to delays in financial statement submissions by the Accountant General’s office.
Addressing revenue leakages, the committee called for stricter measures, including process automation and regular audits of Government-Owned Enterprises. It also instructed the Accountant General, the Ministry of Foreign Affairs, and the Ministry of Interior to resolve issues delaying the automation of revenue collections from foreign missions to enhance transparency.
Rep. Salam disclosed that the 2021 Auditor General’s Report, recently submitted to the National Assembly, would be prioritized once the 2024 Appropriation Bill is passed.
In her remarks, Dr. Madein attributed delays in the consolidated financial statement to inadequate data from the Central Bank of Nigeria (CBN) but assured that efforts to resolve this are near completion. She pledged to conclude the process within two months.
The Accountant General also highlighted ongoing initiatives to enhance public expenditure management, including a review of the Financial Regulations 2009, which is awaiting Federal Executive Council approval.
News
Usman to Morka: “Peter Obi’s life now in your hands, nothing must happen to him
By Kayode Sanni-Arewa
Senator Nenadi Usman, the Chairperson of the Labour Party Caretaker Committee, has issued a stern warning to Felix Morka, the National Publicity Secretary of the All Progressives Congress (APC), stating that he will be held responsible for any harm that may come to Peter Obi or his associates.
Usman emphasized that Morka’s recent threat against Obi, the party’s former presidential candidate, would not be tolerated.
This comes after reports of Obi denying claims of his arrest at his home in Onitsha, Anambra State. Usman maintained that despite Obi’s denial, Morka’s comments on January 5, 2025, directly threatened Obi’s life and were an affront to the democratic process.
In a statement of condemnation, Usman said, “It is with great concern and a deep sense of responsibility that I condemn the inflammatory remarks made by Mr. Felix Morka during his appearance on national television. His statements not only pose a direct threat to Peter Obi’s life, reputation, and business interests, but they also undermine the fundamental principles of democracy, decency, and responsible political engagement.”
Usman continued, highlighting Obi’s dedication to public service, “Mr. Peter Obi is a man of impeccable character who has devoted his life to serving Nigeria and championing good governance. His commitment to merit, competence, and rule of law is unwavering. To attack him with baseless allegations and threats is a clear indication that the APC cannot engage constructively on the issues that truly matter to Nigerians
She further remarked that such rhetoric has no place in the country’s democracy, as it undermines national unity, discourages productive political discourse, and endangers lives. Usman reminded Morka and the APC leadership that “words have consequences,” and that the Labour Party would hold them accountable for any harm that befalls Obi or his associates.
Senator Usman also called on security agencies to investigate the alleged threat and hold Morka accountable for his remarks. “We urge the security agencies to take swift action to investigate this matter and ensure that individuals who use public platforms to incite violence or issue veiled threats are held responsible. Political leaders must rise above such petty behavior and focus on addressing the pressing challenges facing our nation, including insecurity, unemployment, and economic instability.”
Usman reaffirmed the Labour Party’s unwavering support for Obi, stating, “The Labour Party will not be intimidated by threats. Peter Obi represents hope for the Nigerian people, and we stand firmly by him in his pursuit of a better Nigeria.”
Additionally, Usman demanded a public apology from the APC and a retraction of Morka’s statements. She stressed that any failure to do so would imply tacit approval of such reckless behavior. “The APC must immediately issue a public apology to Mr. Peter Obi and retract the offensive statements made by its National Publicity Secretary. Anything less would be a tacit endorsement of such reckless and dangerous behavior.”
Concluding her statement, Usman reminded political leaders of their responsibility to promote peace, unity, and responsible political dialogue, emphasizing that true leadership is measured by how individuals treat one another, especially in times of disagreement.
News
Borno attack: Tinubu mourn slain soldiers, orders probe
President Bola Tinubu on Thursday mourned the soldiers who were killed in an attack on an army base in Sabon Gida, Damboa, Borno State.
Members of the Islamic State West Africa Province (ISWAP) launched a pre-dawn attack in trucks and on motorcycles last Saturday on the base in Sabon Gari in Damboa area of Borno State.
They set fire to the base along with army vehicles, military sources said, on condition of anonymity as they are not authorised to speak on the incident.
Fighter jets deployed from the regional capital Maiduguri 100 kilometres (62 miles) away struck the attackers as they retreated.
Tinubu in a statement by the presidential spokesman, Bayo Onanuga, expressed his profound sympathy to the military authorities following the loss of six brave soldiers during a dawn terrorist attack on January 4.
He ordered a “thorough investigation to uncover the circumstances that led to the unfortunate incident and ensure that it serves as a valuable lesson to prevent similar occurrences.”
“This resolute action by the Army demonstrates the capability and readiness of our military to confront and defeat threats to our nation’s security. Their actions testify to our resolve to eradicate terrorism and banditry, paving the way for a future where peace and security prevail for all Nigerians,” the President was quoted as saying.
I extend heartfelt gratitude and sympathy to our military and security forces on behalf of a grateful nation.
“Your sacrifices and dedication do not go unnoticed, and we stand firmly behind you in this ongoing fight to eliminate these threats.”
The Commander-in-Chief also commended the armed forces for their swift and decisive response, particularly the air component, in launching effective retaliatory strikes.
To Tinubu, the targeted air raids resulted in the significant neutralisation of numerous terrorists and the destruction of their assets as they attempted to flee.
The President wants the military to proactively take the war to the camps of bandits and terrorists.
He particularly emphasised the Northwest, where these criminals continue to threaten the lives and homes of innocent villagers.
Tinubu called on Nigerians and the media to support the military’s efforts to restore peace and security in the nation.
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