About fourteen petroleum filling stations have been sealed by the Nigeria Mainstream and Downstream Petroleum Regulatory Authority, NMDPRA in Kano State for selling the product to their customers above regulatory price.
NigeriaCrime.com gathered that the filling stations predominantly owned by Independent Marketers were sealed by the Kano office of the regulatory body for dispensing the product at N290, N295 and N300 per litre.
Speaking during the enforcement exercise, the Kano Coordinator, NMDPRA office, Aliyu Muhammad Sama said though the marketers are not expected to dispense at discounted prices like the major marketers the prices shouldn’t be considered unreasonable or outrageous.
Sama said the sealed station risk revocation of their operating license or payment sanction of N150,000 per pump.
According to him, “If you check, the major marketers are selling at discounted rates of N185 per litre. We know it is not visible to ask independent marketers to sell at that rate considering the fact of their claim that they are buying the product at a higher cost from the depot.
“But as of today in Lagos the depot owners are selling at N230 per litre to independent marketers so with this amount we understand they cannot sell below cost price. But you can’t sell at N300, N290 per litre because the government is paying N45 per litre as bridges claim.
“If the landing cost is between N230 and N280, and you subtract bridge cost of N45 from the landing cost, you have N235, at least we expect a profit margin of N15. So, marketers can still sell below N290 and make their profits conveniently. Although, as an agency, we are not in the position to fix a price we would not accept a price that is not considered by the public,” Sama said.
The State Coordinator further said that the Regulatory Agency has invalidated the transaction deal of 16 marketers to whip them online.
“For any station that refused to sell at a regulatory price, we invalidate their transactions, and so far 16 have been invalidated which means they have lost bridging and equalisation funds.
“We have a strict regulatory regime, that includes Revocation of licence, payment of 150,000 penalties per nozzle, and prosecution of offenders,” Sama stated.
The stations sealed include Azman petroleum along Maiduguri road, Allah Na Nan Zaria road, Red star Zaria road, AY Maikifi Western Bypass, SID Zaria road and Audu Manager Petroleum on Maiduguri road.
Others are Rimi Holdings, Maiduguri road, Rabash enterprises Nigeria limited Maiduguri road, IDM Makole Nigeria Limited, Alhaji Ahmadu Ila and Sons Ltd, Maiduguri road, Haab investment Limited on Hotoro western bypass.