Oil Marketers Reject N5 Reduction in Pump Price

Oil marketers across the nation have kicked against the recent agreement reached by the Federal Government with the labour leaders, saying it is impossible to sell petrol at N162 per litre given market realities.

On Tuesday, the Minister of Labour and Employment, Dr Chris Ngige, announced N5 reduction in petrol price following the meeting that started around 9 pm on Monday and ended at about 1:30 am on Tuesday morning.

“Our discussion was fruitful and the Nigerian National Petroleum Corporation, which is the major importer and marketers of petroleum products, and customers have agreed that there will be a slide down of the pump price of PMS and that the price cut will get us about N5 per litre and that the price cut will take effect from next Monday, a week today,” Ngige had said.

However, top officials of marketers’ associations said the Federal Government through the Ministry of Labour and Employment took the decision without consulting them. The decision they claimed the read on the pages of newspapers like every other person.

Explaining why it is impossible to sell at N5 below market price, Mr Mike Osatuyi, the National Operation Controller, Independent Petroleum Marketers Association of Nigeria, said given the current global oil prices and the recent devaluation of Naira by the Central Bank of Nigeria “petrol price of N162 cannot work, except we are going back to subsidy.”

He said, “The government said it had deregulated; so, it is not possible to sell petrol at N162 on December 14. If you ask anybody now in the industry, they will tell you the price at which they can sell is about N170 to N180.

“The minister of labour does not have the power to determine the price of petrol. Even the President can only do that if we go back to subsidy.”

Dr Billy Gillis-Harry, the National President, Petroleum Products Retail Outlets Owners Association of Nigeria, explained that the continuous interference in petrol pricing had defeated the purpose of deregulation.

“We have no circular to confirm that price adjustment, and as far as we are concerned, we cannot say it will be implemented until we get an official communication about it,” he added.