Why filling stations haven’t dropped fuel price after Dangote reduction – Marketers

Why filling stations haven’t dropped fuel price after Dangote reduction – Marketers 

The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) says the reduction in the Dangote refinery’s petrol price may not immediately get to consumers due to existing stock.

President of PETROAN, Billy Gillis-Harris, stated this during an interview on Arise TV on Saturday.

Dangote refinery had earlier announced that it reduced its ex-depot petrol price from N950 per litre to N890 following a drop in the cost of petroleum products at the international market.
Gillis-Harris commended the refinery for the reduction but highlighted the difficulties oil marketers faced in lowering prices while selling previously purchased stock.

“You can’t see it immediately, because we’ve already bought products,” Gillis-Harris said.

“We’ve already purchased different kind of product that’s in our retail outlet now at the price which it was prior to the change this evening
“So the moment we lose N60 in that transaction, we are out of business. So we have to keep that product.
“But the only thing that we will advocate is that any one of us that starts buying product from Dangote at that price from tomorrow, Sunday, should endeavour to reflect that price in their retail outlets.”
Gillis-Harris also disclosed that PETROAN had begun a major working relationship with Dangote refinery and MRS, a major petrol retailer.
“So that is going to really help also in making sure that our retail outlets sell products at a uniform price,” he said.
“And that relationship will certainly ensure that petroleum product is available.”