Petroleum stations in Oyo towns selling above N123.50

A petrol station used to illustrate the story
A petrol station used to illustrate the story

Petroleum stations in Ibadan, the Oyo State capital, and other towns in the state are currently ignoring the directive of the federal government to reduce the price of petrol from N125 to N123.50 per litre.

Investigations by PREMIUM TIMES in major areas of Ibadan on Friday and Saturday revealed that majority of the petroleum stations are still selling at the old price of N125.

The Nigerian government had earlier in March announced the reduction of the pump price of petrol to N125.

A statement by Nigerian National Petroleum Corporation, NNPC, said the move was in compliance with the directives of the Honourable Minister of State for Petroleum Resources on petrol pricing.

“Effective 19th March 2020, NNPC Ex-Coastal price for PMS has been reviewed downwards from N117.6/litre to N99.44/litre while Ex-Depot price is reduced from N133.28/litre to N113.28/litre,” Mele Kyari, NNPC Group Managing Director said.

Again, the Petroleum Products Pricing and Regulatory Agency had also in April further reduced the pump price of petrol to N123.50 per litre.

Abdulkadir Saidu, the Executive Secretary of PPPRA, who announced the new pump price, said all retail outlets should start selling at the new price from April 1.

But, many marketers of the product in Ibadan are yet to obey the directive.

Checks by our correspondent in some areas such as Shasa, Ojoo, Apete, Sango, Iyaganku, Molete, Iwo Road and Akobo areas of Ibadan on Friday, Saturday and Sunday revealed that none of the stations which belong to independent marketers had adjusted its pump price to N123.50k as directed.

It was however observed that some stations which belong to the major marketers such as Total and NNPC have adjusted their pump prices as appropriate.

Some of the petroleum attendants told our correspondent that they have been instructed not to sell below N125 by their employers.

Residents lament

A resident of Ibadan, Dasola Adefabi, lamented that none of the petroleum stations in the area had adjusted its price to N123.50k.

Mr Adefabi, the Secretary General, Nigerian Institution of Surveyors (NIS) Oyo branch said: “The issue is that the public was not aware of the second reduction in price. I bought fuel at the rate of N125 per litre. I just discovered on Friday evening that the price has been reduced to N123.50. In this Sasha area along Moniya road, they are still selling at N125.”

Funmi Ajala, a resident of Akobo confirmed that while major marketers had adjusted their pump price, none of the stations that belong to independent marketers had adjusted their pump price.

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Mrs Ajala said “Major marketers like FO, Total, Nipco have since changed to the latest price. Same as NNPC mega station on the Iwo Road-Oojo expressway. Only one independent filling station sells at the new price in our Akobo axis. And Bovas at Bodija too has complied immediately”.

In Apete, Awotan, and Ajibode axis, checks revealed that none of the petroleum stations had complied with the directive.

Biodun Adebayo, a viewing centre owner who spoke with PREMIUM TIMES on Saturday in Ajibode, a suburb of Ibadan, noted that he has been buying the petroleum at the rate of N125 from the petroleum stations despite the directive.

“I have not seen any station selling it 123.5 here. It is N125,” he said.

Another resident of Ibadan, Taiwo Jacob said, “I bought yesterday for N125/litter.”

Residents said the same situation is currently happening in Oyo town.

Olajide Olanipekun, who lives there, said none of the petroleum stations had complied with the directive.

“I bought PMS on Wednesday 1st April, 2020 at N125 per litre in Araromi Area, Oyo Town. Just bought PMS again today. I bought it at N125 per litre in Araromi Area, Oyo Town, Oyo State,” he said.

Our correspondent gathered that what is happening in Ibadan and Oyo town is not different from what is happening in Ogbomoso, which is the second largest town in the state.

Meanwhile, Biodun Olaniran, Chairman, Academic Staff Union of Universities (ASUU) Ladoke Akintola University of Technology (LAUTECH) Ogbomoso, told PREMIUM TIMES on Saturday that only a few stations had complied with the directive in Ogbomoso.

“I am still in Ogbomoso because the stay at home met me there, so I am complying with the directive. I bought fuel last at N125. I have not been out since the reduction again but going through the news around only few stations have complied with 123.50k.”

Members are free to choose between two selling prices- IPMAN

Meanwhile, the Independent Petroleum Marketers Association of Nigeria (IPMAN) said its members are free to choose the price that suits them as directed by PPPRA.

PPPRA in a statement issued on April 1, signed by Mr Saidu, told the retailers to choose between two price bands.

Mr Saidu in the circular obtained by PREMIUM TIMES on Monday said, “In line with government approval of a new price regime effective 19th March, 2020 in which there was a provision for the establishment of a price band within which oil marketing companies (OMCs) are expected to sell at the retail stations.

“Accordingly, the PPPRA wishes to further clarify the guiding price band of (effective from 1st April, 2020).

N123.50k per litre – Lower Band (LB)

N125 per litre – Upper Band (UB)

“Members of the public and all oil marketing companies are to be guided.”

IPMAN Secretary, Ibadan branch, Ismail Abdul-Majeed, in a circular to members of the association, asked members to freely choose between two selling price bands released by the PPPRA.

Mr Abdul-Majeed in the circular, which was obtained on Sunday, said the government reduced the depot price recently from NN133.28k to N113.28k and directed them to sell at N125.

He, however, expressed worry over the latest pump price of N123.50k, saying the government had not further reduced the depot price from N113.28k to make it commensurate with the new rate.

He urged members of the public to understand why IPMAN members would mostly sell at N125 “until the Federal Government reduces its loading price from the current N113.28k.”

“Members can freely choose between the two (2) selling prices band as appropriate. The general public is hereby notified of the above development,” Mr Abdul-Majeed said.


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