By Bisola Adeyemo
The federal government has been notified by the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) on Monday over the rising rates its members were getting petroleum products at the depots.
In a chat with THISDAY, the National President of the association, Dr. Billy Gillis-Harry, who said that the body cannot unilaterally increase fuel prices contrary to reports that its members had pegged the pump price at N178, explained that the current situation was not sustainable.
The product is now at the rate of N158-N160, PETROAN stated,
while encouraging both the buying public and the Nigerian government to take note as the body cannot continue to sell at N162.
PETROAN stressed
Before this report, it was stated earlier that the association had increased fuel prices and had directed its members to comply appropriately, having duly informed the federal government of the decision.
In response to this, Gillis-Harry, said the organization had no such powers, noting that the situation may lead to nationwide scarcity if not resolved by the authorities.
He said: “What we have done is to bring the condition of the business to the knowledge of both consumers and government that the retail outlets have been having very strenuous price pressure because we are buying products at depots at N156 to N159 and even N160, so we can’t sustain selling new products.
“We have not said we are changing our prices, what we said is that the buying public should understand that with the current reality, deregulation should be the focus of what we want to do so that the price of petroleum products can be defined by the forces of demand and supply. This is not anybody sitting down to give any price.
“We do not have the locus to increase unilaterally. There is no time that any of us can increase the price. We are only bringing to the attention of the consumer and the authorities. But the reality is that we are not too far. By the end of this week, all old stocks will be depleted.
“If the old stock is depleted and the depots are insisting that we should buy at that price, there’s no way anybody can sell at N162. Simple logistics from the depots to the filling stations will take over N4 and then thereafter you start incurring expenses in dispensing, running fuel, etc.
“So, there’s no way even the N12 to N14 margin can even keep the business afloat. So, what we pleaded is that all retail outlets should have a human face and be sympathetic. When the situation comes we should be able to do what we should do.”
Meanwhile, the PETROAN national president called on the federal government to give its members the go-ahead to import more products since the market has been deregulated, as the body is fully ready to source its foreign exchange, also the government to act and avert the imminent nationwide fuel scarcity by wading into the crisis and ensuring that depot owners sell at the going market rates, rather than the current increased prices.
“We are alerting the government that we are buying products from the depots at an alarming price That’s all we are saying and that we are under pressure.
“Right now we are doing a full graphical representation to make sure that the government is aware and that they can’t just fold their arms and be looking because right now we are buying at N158 and nobody is saying anything.
So, who will bear the brunt? But I have not said the price is increasing, what I am saying is that government should stop them from selling at those prices and that they should stop adulterating products.
“They should allow PETROAN to start importing our products. We are even going to source our forex and then they can work out the modalities for us,” Gillis-Harry maintained.
