By Adedapo Adesanya
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has announced an increment in the retail pump price of premium motor spirit (PMS), commonly known as petrol, from N160 to N178 per litre.
This was disclosed by the National President of PETROAN, Mr Billy Gillis-Harry, in Port Harcourt, saying the increment was imperative due to the increase in the cost of depot price of PMS from N157 to N160 per litre.
Mr Gillis-Harry explained that the association took the decision so that marketers can remain in business and to avert any suffering which motorists may face as a result of scarcity of products.
He disclosed that that increment is to enable members to restock and stay in business, adding that the federal government has been informed of the marketers’ decision on the increase of the pump price.
“Now as it is today, we are buying petrol in the depot at N157 and N160 per litre, it is not just possible for us as retail outlets owners to do business in this kind of environment. We can only sell our products between N173 and N178 per litre.
“This is what can sustain the business, otherwise there will be product shortages as there will be no capital for us to restock and that is why scarcity will return.”
The Rivers State Chairman of PETROAN, Mr Francis Chilam-Dimkpa, has directed petrol stations owners in the state to restock and retail with the new pump price of N173 and N178 per litre with immediate effect.
Mr Dimkpa called on members of PETROAN to avoid sharp practices like hoarding products and selling above the stipulated price.
The year 2020 was a very difficult one for oil and gas players as the industry was plunged into one of the lowest revenue declines in their history of operations.
Now, with oil prices steady climbing, there have been expectations that the price of the commodity would rise as each level from marketers to retailers would expect to expand their profit margins
Modupe Gbadeyanka