Tears of joy flood the streets of Nigeria as price of petrol cra§hes from N640 per litre to N630 per litre

Prices of the Premium Motor Spirit (PMS), otherwise known as petrol, crashed from N640 per litre to N630 per litre last week as the Nigerian National Petroleum Company Limited (NNPCL) supplied one per cent of the product to independent marketers, The Nation is reporting.

The market started responding positively as soon as the private depots got a wind of NNPCL assurance to supply petrol directly to the independent marketers.
Independent Petroleum Marketers Association of Nigeria (IPMAN), National President, Alhaji Abubakar Maigandi broke the news to The Nation on phone at the weekend.

He recalled that the NNPCL Executive Vice President, Downstream, Dapo Segun, assured the marketers that he would be giving them direct product under the Product Finance Initiative Allocation (PFIA).

According to Maigandi, the independent marketers are entitled to 50 per cent of product allocation but the only one per cent they have received from NNPCL hasdchanged the narrative. His words: “The price has started reducing since NNPCL is giving independent marketers their direct allocation. NNPCL said they will give us direct product instead of taking it to private depot to sell it to us at a higher rate.

“It has started changing the price now even though they just gave us a small quantity. We are supposed to have 50 per cent of the distribution. Let’s say they have given us one per cent. Even that one per cent has started changing the situation of the market.’’

Depot price  has started reducing. It was previously N640 per litre. But when the rumour came, we will start getting our direct allocation, they reduced it to N630 per litre. NNPCL sells at N570 per litre.

The implication is that the independent marketers would not have to rely on private depots that do not have as many retail outlets as them for product supply.”