The Nigerian National Petroleum Corporation (NNPC) has reduced the price of Automotive Gas Oil, also known as diesel, has dropped further from between N175 and N200 per litre as of June 18, 2017 to between N155 and N160 per litre in many filling stations across the country.
Early last month, the NNPC announced that the cost of the commodity had dropped by about 42 per cent within a period of six months, and on Sunday, it stated that the price witnessed another round of reduction as of last week.
The Group General Manager, Group Public Affairs Division, NNPC, Mr. Ndu Ughamadu, attributed the crash in price to the recent strategic intervention of the national oil firm.
He said a national survey done by the corporation indicated that in the last few weeks, the price of diesel had fallen steadily, adding that the study showed that the NNPC mega stations and its affiliates across the country sold the product for N160 per litre.
Ughamadu said many major and independent marketers in Abuja, Lagos, Kaduna, Onitsha, Enugu, Makurdi and most cities were selling the product between N160 and N165 per litre.
“In Port Harcourt, the average price is as low as N150 per litre,” he said in a statement issued in Abuja on Sunday.
The manager of a fuel retail station in Abuja, Ibrahim Isah, confirmed the development, as he noted that his outlet had to reduce the selling price to N165 per litre in line with the prevailing market situation in order to sustain the turnover of the business.
Innocent Abbah, an independent marketer in Makurdi, said the going ex-depot price of diesel from the tarmac or local private depots was N155 per litre.
The NNPC survey, however, showed that the situation was slightly different in Asaba and Warri in Delta State, and Uyo in Akwa Ibom State, where most independent fuel stations as well as major marketers sold the product for N180 per litre.
In the first quarter of 2017, retail prices of AGO, which is one of the deregulated products, shot up to N300/litre in major demand centres.
The NNPC spokesperson noted that the sustained improvement in supply of the product and remodelling of the product distribution channels to address sufficiency issues were part of the interventions by the corporation.
Another area of intervention that enhanced supply and distribution of diesel, according to Ughamadu, is the corporation’s engagement with critical downstream stakeholders such as the Major Oil Marketers Association of Nigeria, Nigerian Association of Road Transport Owners, Petroleum Tanker Drivers, as well as Independent Petroleum Marketers Association of Nigeria.
Source: ( Punch Newspaper )