FG’s ₦1,350 Fuel Discount Yet to Reflect at Filling Stations, Marketers Explain Why

Petroleum product marketers and retailers have explained why the Federal Government’s proposed ₦1,350-per-litre petrol discount is yet to reflect at Nigerian filling stations.

The Minister of Finance, Taiwo Oyedele, had announced last Thursday a 30-day fuel discount, setting the price of Premium Motor Spirit (PMS), also known as petrol, at ₦1,350 per litre at NNPCL filling stations.

But days after the announcement, some NNPCL stations in Abuja actually raised their pump prices to ₦1,405 per litre, up from ₦1,370.

A fresh market survey on Monday showed that NNPCL outlets in Wuse Zones 4 and 6 had since reduced prices to ₦1,370 per litre. Still, as of the time of reporting, none of the NNPCL outlets surveyed were selling at the promised ₦1,350.

The mixed signals have left Nigerians and motorists more confused than relieved.

Adding to the confusion, some other filling stations in Abuja, including MRS, AA Rano and Ranoil, raised their prices over the weekend by between ₦10 and ₦39 per litre, pushing prices at those stations to between ₦1,370 and ₦1,410 per litre.

The National President of the Petroleum Products Retail Outlets Owners Association, Billy Gillis-Harry, blamed the price volatility on speculation following the government’s discount announcement. He said that unless the intervention is extended evenly across the entire downstream petroleum sector, price volatility will continue.

“It is due to speculation. Right now, we have just one dominant refinery and some imports. So that is possible. If demand is too high, it can affect price. There’s nothing to panic about. Eventually, the price will be stable,” he said.

He urged motorists and Nigerians not to panic, assuring them that prices would eventually settle.

Similarly, the National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Abubakar Maigandi, had earlier called on Nigerians to avoid panic buying, saying his members have enough stock supplied by the Dangote Refinery. He also repeated his call for the Federal Government to extend the proposed discount to IPMAN members rather than limiting it to NNPCL stations alone.