The Nigerian National Petroleum Company Limited (NNPCL) has decided to crash the depot price of the Premium Motor Spirit (PMS), otherwise known as petrol, from N640 per litre to N570 per litre through direct allocation to markters.
Abubakar Maigandi, the National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), confirmed the new price nothing that NNPC has also promised more supply.
The Nation reports that independent marketers paid for the product at the new petrol price last week.
However, Maigandi noted that only 1% of products were supplied to marketers instead of the 50% product allocation.
Maigandi was quoted as saying:
“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.
“NNPCL 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 1% 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.”.
He noted that with NNPCL supply, independent marketers would not have to rely on private depots for product supply and this help bring down retail price.
