New Pump Prices: 48 Hours After Take-off, Compliance Still Arbitrary
According to THISDAY, the Nigerian National Petroleum Corporation (NNPC) and most of the oil marketing companies at the weekend ignored the implementation of the approved new pump and ex-depot prices of petrol, which took effect on January 1, 2016.
This is coming as the marketers have argued that all the basic assumptions, permutations and projections by the government in the new pricing model are unrealistic in view of the high cost of foreign exchange.
Under the revised pricing template by the Petroleum Products Pricing Regulatory Agency (PPPRA), the government had approved two pump prices – one for the retail outlets of the NNPC, which would sell at N86 per litre, and another for the retail outlets operated by the private oil trading companies, which would sell at N86.50 per litre.
With the new pricing, the ex-depot price of petrol has also potentially dropped to N77 per litre, against the previous official price of N77.66 per litre, with effect from January 1.
Further investigation revealed that both the NNPC and the private marketers did not adjust to the new prices at the weekend, due to concern on the economics of the new pricing model in the face of myriad of challenges facing the downstream operators in the areas of sourcing products and foreign exchange.
While the NNPC were still selling at the old ex-depot price of N77.66k per litre at the weekend, other marketers sold between N90 and N100 per litre at the gates of the depots, thus making it unrealistic for the product to be sold at N86 per litre at the pumps in most filling stations.