• Ex-Depot Price Hits N84/Litre
Despite the promises of intervention on the part of the Nigerian National Petroleum Cooperation, (NNPC), the pump price of the Dual Purpose Kerosene (DPK) simply known as Kerosene has continued to soar, even as some apprehensive importers of the product have refused to engage in further importation for fear of running at a loss.
The NNPC had recently allayed fears of imminent hike in the price of the product and also promised swift supply to all depots and outlets. However the situation has refused to change as the price of kerosene still remain high at the depots.
Shipping Position Weekly investigations revealed that very few marketers are having the product as majority of them are scared of importation at a high price in addition to the landing cost, and still be subjected to control of the Petroleum Pipeline Product Regulatory Agency, (PPPRA), to sell it at an unfavourable benchmark price.
Also, complaints of marginalization in product allocation had recently emanated from some of the independent marketers who alleged that there is a high level of underhand dealings in the process of allocation of product importation as being carried out by the PPPRA; the marketers alleged that it is not being done on a level plain ground.
Industry operators who spoke with our correspondent last week however confirmed that “because of the PPPRA, many marketers do not want to import kerosene because you will lose at the end of the day, when you calculate the amount you used in importing the product; maybe it is N50 per litre and they are asking you to sell at that same price, how do you get your money back” a source said.
Another operator who spoke to our correspondent at one of the depots in Lagos simply explained that “apart from the low level of importation which has pushed the price up and made many of the depots to be empty, people are scared of adulteration because the price of diesel is higher and kerosene can easily be adulterated to get it, also there have been suspicions of product diversion and where the product are being taken to”
It was also gathered that the same situation is observable in Warri in Delta state where importers no longer lift kerosene. As at last week, the price of the kerosene remains N84 per litre, up from the previous depot price of N54 per litre.
The development has once again pushed pump price of kerosene to N95/litre at most filing stations in Lagos and neighbouring states.
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