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Major Marketers Defy PPPRA, Sell Above Benchmark

News » Business

Image: Minister of  Petroleum, Mrs Dizeani Allison Madueke




Following the removal of petrol subsidy by the Federal Government, some marketers, especially major marketers, have taken advantage of the new pricing regime to engage in profiteering, selling petrol above the N143.56k benchmark set by the Petroleum Products Pricing Regulatory Agency (PPPRA).

PPPRA had deregulated petrol but directed the marketers to procure products and sell at a benchmark price to be published every forthnight on the agency’s website.

However, some marketers have told THISDAY on condition of anonymity that since they source products from different refineries in Europe at varying costs, the issue of uniform price is untenable.

After the news of the removal of subsidy filtered in on Sunday, many filling stations hurriedly closed to business, before the dealers were later directed to adjust to the new price regime by their head offices.

THISDAY’s investigation revealed that while some marketers were selling below the PPPRA benchmark to reflect their landing costs, others were selling at between N150 and N180 per litre, in defiance of PPPRA’s directives.

Reacting to the attitude of some marketers, a Deputy Director at the Department of Petroleum Resources (DPR) and spokesperson of the agency, Mrs. Belema Osibodu told THISDAY that the agency was already working to ensure a hitch-free implementation of deregulation.

“Deregulation has just started. So, any member of the public who has information on marketers who are not following the rules should forward it to us, so that we will give such information to our inspection team,” she said.

Majority of the marketers, flouting the PPPRA rules, it was learnt, were major marketers, while there were no long queues at most of the filling stations.
For instance, the Mobil Filling Station at the Festac Link Road in Amuwo-Odofin was initially selling at N180 per litre, when our correspondent visited but later adjusted downwards to N150 per litre.

Another Mobil Filling Station at Gbagada Estate was selling at N145 per litre, above the PPPRA benchmark. Total Filling Station along the same Festac Link Road in Amuwo-Odofin was selling at N150 per litre; while another Total Filling Station opposite Iba Housing Estate in Ojo Local Government Area was selling at N160 per litre yesterday.
An independent marketer, Energy Filling Station around Ponle Bus Stop in Alimosho was selling at N145 per litre.

Akindeck Filling Station, an independent marketer, located at Abaranje Road in Ikotun was selling at N141.50 when our correspondent visited yesterday.
Another independent marketer located at the gate of the former office of The Punch newspaper was offering the lowest price of N139.20 per litre, according to investigation.
However, the Oando Filling Station at Awolowo Road Ikoyi was selling at N141 per litre, when THISDAY visited the facility.

Announcing the removal of subsidy in a statement on Sunday, the Executive Secretary of PPPRA, Mr. Reginald Stanley had assured consumers of adequate supply of quality products at prices that are competitive and non-exploitative.

He promised that his agency in conjunction with the Department of Petroleum Resources (DPR) would ensure that consumers were not taken advantage of by the marketers.

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Updated 7 Years ago

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Tags:     Petroleum Products Pricing Regulatory Agency (PPPRA)     Fuel subsidy removal