KEY POINTS
• Some oil marketers in the FCT have reduced petrol pump prices by between N20 and N25 per litre.
• MRS cut its price from N1,395 to N1,370 per litre, while NNPC and other marketers also adjusted prices.
• IPMAN says marketers are responding to prevailing market conditions, although operators face losses from products bought before the latest price decline.
MAIN STORY
Some oil marketers in the Federal Capital Territory have begun reducing the pump price of Premium Motor Spirit (PMS), popularly known as petrol, by between N20 and N25 per litre.
Checks by the News Agency of Nigeria (NAN) on Sunday in Abuja showed that MRS had reduced its pump price by N25 per litre, from N1,395 to N1,370.
NNPC also reduced its pump price to N1,395 per litre, while Mabso sold petrol at N1,388 per litre.
Similarly, AY Shafa reduced its pump price to N1,420 per litre from N1,430, while NIPCO Retail Outlet cut its price from N1,430 per litre to N1,410.
The latest adjustments point to a continued downward movement in the petrol wholesale market, with lower depot prices beginning to reflect in pump prices in some parts of the country.
Meanwhile, Brent crude fell by 2.28 dollars, or 2.14 per cent, to 104.30 dollars per barrel from 106.58 dollars.
West Texas Intermediate (WTI) also declined by 1.79 dollars, or 1.89 per cent, to 92.82 dollars per barrel from 94.61 dollars.
Mr Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), said marketers would continue to adjust to prevailing market conditions.
He said marketers would also seek ways to remain competitive and sustain their businesses.
According to him, the major challenge facing independent marketers was market volatility, as many operators had purchased petroleum products before the latest decline in prices.
He said members of the association would continue to cushion the effect of the loss while seeking ways to remain in business.
Ukadike said the situation was part of the realities of a deregulated market, where competition and market forces determine prices.
THE ISSUES
- Petrol prices are beginning to fall in Abuja as lower wholesale prices feed into retail prices at some filling stations.
- Marketers face the challenge of managing inventory purchased at higher prices as pump prices decline.
- Market volatility remains a major challenge for independent marketers operating in a deregulated petroleum market where prices respond to prevailing market conditions.
WHAT’S BEING SAID
“Marketers would continue to adjust to prevailing market conditions.” – Mr Chinedu Ukadike, National Publicity Secretary, Independent Petroleum Marketers Association of Nigeria
“The major challenge facing independent marketers is the volatility of the market.” – Mr Chinedu Ukadike, National Publicity Secretary, Independent Petroleum Marketers Association of Nigeria
WHAT’S NEXT
Marketers are expected to continue adjusting pump prices in response to movements in wholesale petrol prices and broader market conditions, while operators seek to manage losses on products purchased before the latest price reductions.
BOTTOM LINE
Petrol pump prices have begun to decline at some filling stations in Abuja, with reductions of up to N25 per litre recorded. The adjustments are coming as lower wholesale prices feed into the retail market, although marketers say price volatility remains a challenge for operators holding higher-priced inventory.
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