KEROSENE SCARCITY HITS AS PETROL PRICES STABILIZE
BY OMOKHUALE PUAH
THISDAY’S Newspaper has the report that ‘the price of petrol at the various depots in Lagos has remained relatively stable, despite its looming scarcity raised by some major and independent markets’.
Due to the high cost of accessing foreign exchange, marketers alarmed in recent weeks that the N145 per litre pump price of fuel would not be sustained and that the new price which began effect in May 2016 was based on the exchange rate of N280 per dollar.
With the rise in the cost of dollar, the marketers argued that the price of petrol should also increase, so as to affect the prevailing exchange rate of over N400.
In accordance with the previous circular released by the PPPRA, the lower limit of the ex-depot price is N123.28 per litre while the upper limit is N133.28.
As scarcity of foreign exchange to fund importation increases with only a depot of stock at the weekend, the price of kerosene has risen to N180 per litre, THISDAY has it.
This was discovered before the previous price of depot rose to N188.50 in Eterna Oil depot, which sold at N165 per litre.
However, despite the alarm raised that the country was heading for a fuel crises, marketers retained their petrol price, below the upper limit of the indicative price band approved by the Petroleum Products Pricing Regulatory agency (PPPRA).
Mrs. Rahamanniya and Techno Oil sold at the weekend for the ex-depot price of N130.50 which goes above the upper limit approved by the PPPRA.
Noticeably, the price of kerosene has increased of recent, because only depot had stock during the weekend as one litre was sold at N188.50 which is above the previous N165 per litre. Currently with the high cost of kerosene at various depots, its pump price at retail outlets would be above N200 per litre.