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Friday, December 1, 2023

Low demand causes petrol price to fall at depots

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Low demand has caused the price of Premium Motor Spirit (PMS) to fall between N495 – N496 per litre from N502 to N503/litre at private depots at the weekend.

AFRIPOST reported that the prices of petrol may go above N700/litre in July owing to the recently devalued exchange rate.

Independent Petroleum Marketers Association of Nigeria (IPMAN), National Vice President, Alhaji Abubakar Maigandi broke the news to The Nation on phone Saturday.

He attributed the decline in price to low demand for the product.

Lamenting the crash in demand for the PMS, he said customers, especially civil servants cannot cope with the new rates.

According to him: “They are even reducing the price compared to last week. “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 in Lagos that is what they are selling. NNPC is maintaining its old rate N479.6/litre.

“There is no much market because people, especially the civil servants, are complaining there is no money.”

He urged importers of the product to hasten the supply, noting that there has been no fresh stocking since the removal of subsidy.

Maigandi, who said vessels of petrol may arrive in July, warned the suppliers not to allow their stock to dry up at any time.

The National Vice President said: “Nobody has imported petrol since the removal of subsidy even NNPC did not import.

“We are all using the old stock. But I know probably this month there will be new stock if not it may create scarcity.

“The government should not allow the fuel to get scarce. They should ensure they bring new stock. That is what we are expecting.”

The major oil marketers of Nigeria recently said consumption of PMS has reduced by 20% from 66 million litre/day to just over 40 ml/d.

Its Executive Secretary, Clement Isong, said adjustment of lifestyle due to increased rates was accountable for the decline in demand.

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