Oil Marketers have allegedly reported a loss of $7 million as pump price of petroleum products in the country was yesterday reduced by Le1, 000.
Disclosing this was the Managing Director of the National Petroleum (NP) Company, Babatunde Cole, who stated in response to a question from Awoko that “the total stock of all products has incurred a loss of $7million dollars” as a result of the downward trend in the pump price.
This is the second reduction within two weeks as the current world price continues its downward trend.
Announcing the further reduction yesterday, the Managing Director of Safecon, Amadu Ndeoka said, “the oil industry has always promoted the adjustment of the pump price as and when the combined effect of both the local exchange rate and the international market for oil indicates an upward or downward trend”.
He went on “changes have taken place in the international market since the last price reduction on 13th October 2008,” and maintained, “due to these changes in the world market price for oil, we wish to announce with effect from 27th October 2008 a reduction in prices of petroleum products as follows.”
Petrol, Diesel and Kerosene attracted a reduction of Le1, 000 from Le15, 000 to Le14, 000, while fuel oil is reduced from Le8, 418.13 to Le6, 891.24 per gallon.
The Director of Petroleum Unit, Dan Mason explained government’s determination to ensure that transport owners adhere to the reduction cost in pump prices. He assured all that “the message would be driven harder this time for transporters to abide by the cost, so that it would reflect on commuters”.
However, he disclosed that, they have stocks which would last until December, but there is need for replacement; while he lauded the efforts of government to have waived certain facilities that should have seen the pump price shooting up to about Le20, 000.
He recapped that in July the world price was $147 for barrel, while as at yesterday the current price in the world market is $59.85 a barrel.
Most commuters lauded the oil marketers for the price decrease, but are expressing optimism that government should ensure that this is reflected in transportation costs as most drivers are taking advantage on commuters by refusing to stick to the new transportation price.
By Samuel John