‎On Monday, petroleum product marketers expressed their grievances over financial losses following the Nigerian National Petroleum Company Limited's decision to reduce the price of Premium Motor Spirit (petrol) to N880 per litre in Lagos and N935 in Abuja.

From a previous price of N925, certain NNPC retail outlets in Lagos revised their pump price to N880 on Easter Monday, whereas outlets in Abuja adjusted their price from N950 to N935.

The NNPC's reduction in price occurred merely a week after the Dangote refinery had decreased its ex-depot price from N865 to N835 per litre.

Furthermore, the $20 billion refinery instructed its partners, including MRS, Heyden, and Ardova, to sell petrol at a rate of N890 per litre instead of N920 in Lagos, N900 in the South West, N910 in the South-South, and N920 in the North East.

Nigerian News Leader notes that NNPC's new price in Lagos is N10 lower than Dangote refinery, indicating a price war. Some NNPC stations sell at old rates until stock is exhausted. Fashola confirmed the price reduction, saying operators are losing money. NNPC Retail sent a memo to its outlets to change prices.

"It is confirmed that NNPC has reduced PMS prices. It is now N880 per litre in Lagos. They sent messages to their retail outlets. Some of them have already put the price at N880. However, they allow those having old stock to continue selling at the old rate. Some are still selling at N910. “Those are the ones that still have their old stock. So, the same thing applies to independent marketers. Those that have their old stock are still trying to see how they can dispense it,” he stated.

While acknowledging that the fluctuation in fuel prices is one part of deregulation, Fashola declared that marketers are losing money. “The price reduction is a welcome development, but at the same time, it has a negative impact on the side of the marketers. We are losing money. That’s just the truth. We are losing money. That’s the bitter truth,” he said.

‎According to him, the price cuts are good for the masses, but marketers pay the price. ‎ ‎“On the side of the masses, Nigerians are better for it. People are getting cheaper fuel now, which is good. That’s the beauty of deregulation that we are talking about. There’s nothing anybody can do about it. But marketers are the ones bearing the losses, seriously.

When ‎asked if there is any way to reduce the losses, he replied, “On the part of marketers, what we can do is just to try as much as possible to try and sell. We will reduce prices to a level that, at least, our losses will not be too much. So, you will be able to get rid of your old stock before you go to the market to buy at the new rate and start selling at the new rate.

Fashola refused to project whether the petrol price could drop to N800 or N700 soon. ‎ ‎“I don’t want to predict that. You know, two major factors determine this – the crude oil price and our exchange rate. So, I don’t want to predict the price. All these things have their implications. If the crude oil comes down to something like $50 per barrel, it has its own implications for our economy. It will affect the government revenue. At the same time, inflation and all that are also there. So, I don’t want to predict that,” he stated.

‎Please be reminded that the Dangote refinery recommenced its price reductions following the Federal Government's directive to perpetuate the naira-for-crude agreement indefinitely.