Why we crashed diesel price nationwide by 42% – NNPC
The Nigerian National Petroleum Corporation (NNPC) said its key strategic intervention has crashed the price of Automotive Gas Oil (AGO), also known as Diesel to about 42% nationwide, a huge downslide over the last six months.
It would be recalled that in the first quarter 2017, retail prices of AGO, which is one of the deregulated products, shot to an all-time high of N300/litre in major demand centres across the country.
BusinessDay investigation also revealed that the price of the products at the fuel stations especially those owned by major oil marketing companies in Lagos ranged between N178 and N195 per litre depending on the location of the filling station.
This unpleasant situation of price hitting about N300 a litre placed a huge burden on truck drivers, who need the product for transporting their vehicles; the nation’s manufacturing sector, which requires it to run its operations as well as on the masses, who need it for household power generation.
The Strategic intervention by NNPC helped sustained improvement in the supply of diesel, such that the product’s retail prices as at the end of May 2017 ranged from N175 to N200 across the country (a significant price drop of about 42%), while ex-depot prices also dropped to between N135 and N155.
Ndu Ughamadu, NNPC Spokesperson, while speaking about this remarkable achievement said some of the Corporation’s strategic interventions in this regard include improving the supply of AGO and remodeling of the product distribution to address sufficiency issues across the country.
“Since January this year, we have worked very hard with relevant stakeholders to improve distribution from refinery depots, by implementing a robust loading programme,” Ughamadu affirmed.
Also, in its quest to enhance efficient distribution of AGO, the Corporation was able to resuscitate its critical pipelines and depots in places such as Atlas Cove-Mosimi, Port-Harcourt Refinery-Aba and Kaduna Refinery-Kano. Efforts are also ongoing to revamp and commission other critical pipelines across the country.
Another key intervention that has enhanced supply and distribution of diesel, the NNPC spokesperson noted, was the Corporation’s robust engagement with critical downstream stakeholders where salient issues were raised and duly addressed. These stakeholders include: Major Oil Marketers Association of Nigeria (MOMAN), Nigerian Association of Road Transport Owners (NARTO), Petroleum Tanker Drivers (PTD) as well as Independent Petroleum Marketers.
Furthermore, as a result of consistent positive engagement with the Central Bank of Nigeria (CBN), NNPC equally extended the expansion of Premium Motor Spirit (PMS) Foreign Exchange Intervention Scheme to accommodate Diesel and Aviation Fuel.
He assured the general public that the Corporation would continue to ensure seamless supply and distribution of diesel and other petroleum products across the country to make the lives of Nigerians better.
AGO has been deregulated and because of this marketers source for it at the international market because the refineries are not producing enough for the country.
Getting foreign exchange rate was however an issue as it exchange for as high as $1 to N340. This made the local price of the product to escalate to as high as N300 per litre.
Olusola Bello