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Ondo, Ekiti petrol dealers give reasons for fuel scarcity

By Oluwaseun Akingboye
15 July 2015   |   11:41 pm
PETROLEUM Filling Station Dealers and Owners Association, Ondo and Ekiti States’ Chapter, has appealed to the Federal Government on the need to deregulate the sector and effect immediate removal of fuel subsidy.

PETROLEUM Filling Station Dealers and Owners Association, Ondo and Ekiti States’ Chapter, has appealed to the Federal Government on the need to deregulate the sector and effect immediate removal of fuel subsidy.

At a press parley in Akure, President of the association, Mr. Jimi Adedabo, the Secretary, Otunba Fatunbi Akinyele and scores of their members said fuel subsidy is a huge fraud and will continue to mete hardship on Nigerians if not removed.

The President explained reasons for fuel scarcity and variances in the price of the Premium Motor Spirit (PMS), saying: “For some time now, the product has not been available at the Nigerian National Petroleum Corporation (NNPC) depots due to scarcity. Consequently, our members have been sourcing for the products through other means with the attendant cost.”

“For the past three months, NNPC has been importing fuel since the independent marketers went on indefinite strike to protest non-payment of their subsidy fees.

“Even NNPC gives out fuel, the cost to us at our stations are above N89.00 per litre. One wonders how as businessmen with responsibilities can sell below cost price. The ordinary Law of Supply and Demand will not allow it,” he said.

Adedabo said that the cost of PMS from Lagos cost about N96 to N100 per litre, they transport N7.00 per litre, while it cost them N1 to load per litre; totalling N104.00 to N108.00 per litre to source for the commodity from Lagos depot.

According to him, a litre from Ogara/Warri Depot in Delta State cost N99 to N102, N2.00 to N5.00 is expended on transportation, the loading expenses equally cost N1.00 and the total cost to their filling station per litre cost N105 to N108.

He said: “Above is exclusive of operating expenses such as diesel to run the station, members of staff salaries and wages, strategies, office and pump maintenance,” maintaining that with the analysis above, it is very difficult for them to sell at the government approved price of N87.00 per litre.

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