The Nigeria Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, has sealed 14 fuel stations owned by independent petroleum marketers in Kano State, north western Nigeria, for selling premium motor spirit, popularly called petrol to the public at very high prices.
Prices captured during the clamp down by the enforcement team of NMDPRA ,witnessed by Journalists ranged between N290, N295 and N300 per litre, as against ex-depot pump price of below N290.
The Zonal office Coordinator of NMDPRA in Kano, Aliyu Sama, said “the sealed stations risk revocation of their operating licences or payment of N150,000 fine per pump.”
According to him, over 100 stations found guilty of similar offence were sealed in December 2022.
He said with landing cost and Bridges cost, Independent marketers can sell Petrol below N290 and make profit.
“Independent marketers have no justifiable reason to sell at N300 or N290 per litre after claiming equalisation funds from the Federal Government.
“The agency would not accept any act of racketeering”from the private marketers.
“As at today in Lagos, the depot owners are selling at N230 per litre to independent marketers; so, with this amount, we understand they cannot sell below cost prize. But you can’t sell at N300 or N290 per litre because government is paying N45 per litre as bridges claim.
“If the landing cost is between N230 and N280, and you subtract bridges cost of N45 from the landing cost, you have N235, at least we expect a profit margin of N15. So, marketers can still sell below N290 and make their profits conveniently.
“As an agency, we are not in the position to fix price; but we would not accept a price that is not considerate to the public,” said Sama.