Petrol depot prices crash amid pump price hike speculations

Following speculations that the pump price of Premium Motor Spirit (PMS), otherwise known as petro may hit N700 per litre in July, private depots have crashed their prices to between N495 and N496 per litre from between N502 and N503 per litre.

The Nigerian National Petroleum Company Limited (NNPCL) depot however retained its N479.6/litre price.

Blueprint investigation revealed that the crash in depot prices was as a result low demand for the product in the country.

National Vice President, Alhaji Abubakar Maigandi, who disclosed this at the weekend said, “They (private petrol depots) are even reducing the prices compared to last week’s. They are selling at the rate of N495 to N496/litre. You know it reached N502 to N503/litre.

“In Lagos, most of the depots, that is what they are selling. NNPC is maintaining its old rate of N479.6/litre. There is not much demand because people, especially civil servants, are complaining that there is no money.”

According to him, nobody has imported petrol since the removal of the subsidy, urging importers of the product to expedite action on importing the commodity into the country.

 “We are all using the old stock. But I know probably this month there will be new stock. If not, there may be scarcity,” he added.

Reacting to the reduction in numbers of litres by Nigerians from 66 million litres per day to a little over 40 million litres, Executive Secretary of Major Oil Marketers of Nigeria (MOMAN), Clement Isong, said adjustment of lifestyle due to increased rates was responsible for the decline in demand.

He said: “What we are hearing is that the consumption came down. It used to be 66 million litres per day for the country, but it came down to just over 40 million litres per day.”