• Sunday, June 23, 2024
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Petrol sells for N142 per litre in Lagos to attract customers


Some filling stations in Lagos State have reduced the price of petrol per litre in order to attract customers. They sell between N142 and N143 per litre as against the N145 per litre, which has been what every station has been selling except the NNPC filling stations since the review of the price of the product some few months ago.

Some attendants at the filling stations concerned told BusinessDay about their desire to win more customers, especially in areas where there were heavy presence of NNPC filling stations, which sells at N140 per litre.

BusinessDay investigation reveals that some of the filling stations were beginning to lose customers, especially where there are many NNPC filling stations, and felt they have to device a means of staying the market.

But the chairman of NUPENG South West, Nojeem Korode, when asked, said two factors could be responsible for the actions of the dealers to sell at N142 and N143, respectively.

He said the first   reason  could be  because  of the  concession given to the  marketers  for them  to pick  the   product  at N133 per litre, and  some of them could  just add  about  N2 for transportation per  litre, and  then after sell  at a price they  like within the range of  N135 and N145 per litre to compete with NNPC.

The  second  reason  is that  there are those that do not have enough capital  to buy directly  from the depots, and approach a third  party  to buy  from them. Such marketers, he said, buy the product at some premium and when it gets to their stations, in order to recoup what they have spent to purchase the product, though they put the price at N142 or N143, but the volume dispensed into vehicles is highly under measured.

“In this case,  if  N2000 was  to give 10 litres at the  real price of  N142 per litre,   you would  discover  that  it was actually   seven litres that are pumped into your  car,” he said.

For instance, BusinessDay investigation across petrol stations along Isheri- Igando Road in a Lagos suburb reveals a price variation between N142 to N145 per litre.

In the first filling station visited Walesef Petrol Station by Powerline Bus Stop, the price of petrol per litre was N142. The manager was not on ground to response, however, the petrol attendant who spoke on the condition of anonymity, said the management decision to sell at N142 was a marketing strategy to retain their customers and win over new ones.

She pointed out that as a new petrol station in the mist of competitors, management of the station had to device means to gain the trust of customers.

Petrocam, a mega station along Isheri-Igando Road, when BusinessDay visited was selling at N143 per litre. The petrol attendant informed that the new price has been on now for the past two weeks. He noted that the price reduction from the official price of N145 to N143 was necessary given the fact that competing stations were selling at a lower price.

For Omolade Petrol located directly opposite Petrocam Filling Station, the price is N145 per litre. When BusinessDay inquired, the manager, Adeola Kareem said the petrol station business was about choice, and he could not sell below the price bought. He however disclosed that some of the station selling at a reduced price might be dispensing fuel with a doctored meter.

He however insisted that ultimately, it was the decision of customers to buy petrol wherever they decide and at what price.