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Almost one week after the Federal Government announced a reduction in the pump price of the Premium Motor Spirit (PMS) otherwise known as petrol from N145 to N125, TheNewsGuru.com, TNG reports that most filling stations in the metropolis have complied.
Recall that the Minister of State for Petroleum Resources, Chief Timipre Silva had on Wednesday, March 18th in a statement announced the reduction.
He attributed the slash to the decline in the prices of crude oil.
His statement announcing the reduction read in part: “The drop in crude oil prices has lowered the expected open market price of imported petrol below the official pump price of N145 per litre.
“Therefore, Mr. President has approved that Nigerians should benefit from the reduction in the price of PMS which is a direct effect of the crash in global crude oil prices.
“In view of this situation, based on the price modulation template approved in 2015, the Federal Government is directing the Nigerian National Petroleum Corporation (NNPC) to reduce the Ex-Coastal and Ex-Depot prices of PMS to reflect current market realities,” the statement said.
However, one week after the announcement, TNG’s monitoring team revealed that most of the filling stations had complied but initially dragged in their compliance. Majority started full compliance on Monday (yesterday) on the pretence that they are still selling their old supply. As expected, the NNPC mega and retail stations across the state adjusted almost immediately the announcement was made thereby pulling several customers to themselves.
“They didn’t comply for three straight days after the order was given. Many of them said they were still selling old supplies and changing to the new price adjustment immediately would incur huge loss for them. They promised to adjust after receiving new supply. However, we started boycotting them. We bought from only those who sold at N125 not minding the distance, a commercial driver who plies Amuwo Odofin environs told TNG.
During the monitoring which started on Friday, TNG observed that some filling stations shut down operations as soon as they exhausted their supply.
“We opened last on Saturday. That was when we exhausted the product we had in store before the reduction announcement by the Federal Government was made. We are yet to receive new supply till date. If we receive the new supply today, we will sell at the recommended price,” a manager of one the new filling station at told TNG.
Asked if they adjusted immediately the announcement was made, he said: No. We didn’t. We can’t sell something we bought at an higher rate for the new price. We’ll run at a loss and that is not good for business. We do explain to our loyal customers and they understood us. Those who do not understand buy elsewhere.”
TNG also observed that as part of efforts to woo more customers, some filling station sold few kobo less the recommended price. Selling at N124.88k.