The Nigerian National Petroleum Corporation (NNPC) says automotive gas oil (AGO), also known as diesel, is being sold for as low as N155/litre in some fuel stations around the country.
According to the corporation, its “strategic intervention” ensured the continued decrease in the price of diesel.
The price of diesel recently crashed by about 42% nationwide, after having spiked to an all-time high of N300/litre in the first quarter of 2017.
A statement by Ndu Ughamadu, group general manager, public affairs division, said, “A national survey by Oil and Gas Forum, NNPC’s weekly TV programme, indicated that in the last few weeks, the price of diesel has fallen steadily from between N175 and N200 per litre as at June 18, 2017, to as low as between N155 and N160 per litre in some stations across the country as at last week.
“The study showed that NNPC Mega Stations and its affiliates across the country sold the product for N160 per litre while many major and independent marketers in Abuja, Lagos, Kaduna, Onitsha, Enugu, Makurdi and most major cities were selling between N160 and N165 per litre. In Port Harcourt the average price is as low as N150 per litre.
“The manager of a fuel retail station in Abuja, Ibrahim Isah, said the station 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.
“An independent marketer in Makurdi, Innocent Abbah, said the going ex-depot price of diesel from tarmac or local private depots is N155 per litre.
“However, the situation is 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.”
The corporation said its “robust” interface with key stakeholders in the downstream sector also contributed the steady decline of diesel price, especially after “salient issues” were resolved.
“The corporation has also taken huge steps to resuscitate some of its critical pipelines and depots such as the Atlas Cove – Mosimi Depot Pipeline, Port-Harcourt Refinery – Aba Depot Pipeline, Kaduna – Kano Pipeline and the Kano Depot which have enhanced efficiency in the distribution of AGO. Efforts are also ongoing to revamp and re-commission other critical pipelines and depots across the country,” the statement read.
The statement further noted that the foreign exchange intervention scheme of the Central Bank of Nigeria will now “accommodate” diesel and aviation fuel.
“Furthermore, as a result of consistent positive engagement with the Central Bank of Nigeria (CBN), the corporation has equally achieved the expansion of the Premium Motor Spirit (PMS) Foreign Exchange Intervention Scheme to accommodate diesel and aviation fuel,” it added.