The Petroleum Dealers and Owners Association in Ondo and Ekiti States on Monday said it would not be able to sell fuel at the pump price of N87 per litre due to non-availability of the product.

Chairman of the association, Mr Jimi Oladapo, said at a news conference in Akure that petrol was not available at the NNPC depots, adding that members had been sourcing it through other means at exorbitant cost.

The News Agency of Nigeria (NAN) recalls that some filling stations in the areas were recently sealed by the Department of Petroleum Resources (DPR) for selling fuel above the government recommended price.

Oladapo said rather than forcing them to sell at unrealistic price, the Federal Government should deregulate the downstream oil sector to enable them to sell at appropriate prices.

According to him, the true cost of a litre of petrol varies from the source.

"Specifically, total cost per litre of fuel from Lagos ranges between N104 and N108 while the landing cost per litre from Oghara/Warri in Delta State is between N105 and N108 per litre.

``The landing cost is exclusive of operating expenses such as diesel to run the station, staff salaries and wages, strategies, office and pump maintenance.

"From the analysis, you will agree with us that it will be impossible for us to sell at the government approved price of N87 per litre," he said.

Adedapo also noted that even when NNPC gives out fuel, the cost to them at their stations are above N89 per litre.

"One wonders how a businessman with responsibilities can sell below cost price. The ordinary law of supply and demand will not allow it,’’ he stressed.

The chairman contended that despite their plight, the regulatory authorities, particularly the DPR in Akure, had gone ahead to seal off stations in the two states.

"Rather than running our stations at a loss, since most of us are on loan from financial institutions, we have resolved not to procure the products until it is readily available at NNPC depots," he said. (NAN)

Photo shows: Petrol station

Update news