Oil marketers keep kerosene price high

Despite falling oil prices and the declining cost of Dual Purpose Kerosene in the global market, oil marketers in the country have reinforced their cartel with the motive to maintain the high price Nigerians pay for the product.With oil prices dropping by over 60 per cent from above $120 per barrel to less than $50 per barrel, oil marketers in Nigeria have refused to move with the trend even after the Nigerian National Petroleum Corporation announced it was sticking to N50 per litre of kerosene.Eleven filling stations, comprising members of the Major Oil Marketers Association of Nigeria and Independent Petroleum Marketers Association of Nigeria, visited by our correspondent in Ikeja, Lagos on Wednesday and Thursday still sold the product between N120 and N150 per litre.The Executive Secretary, Major Oil Marketers Association of Nigeria, Mr. Femi Olawore, told our correspondent that the NNPC had been the sole importer of kerosene.According to him, major oil marketers did not import the product, and did not collect subsidy payment for DPK.The Director, Department of Petroleum Resources, Mr. George Osahon, had described the situation as disturbing, and warned marketers to desist from such an act, as the agency would sanction any retail outlet caught selling kerosene above the approved price.But amid these threats by the DPR, oil marketers have continued to sell DPK for above N100.The corporation said in a bid to get kerosene to consumers across the 36 states of the federation and the Federal Capital Territory, Abuja, at the regulated price of N50 per litre, it had initiated a scheme aimed at cutting off the several layers of middlemen who made it difficult for the end user to enjoy the subsidy on the product.Speaking on the objective of the ‘Kero Correct’ initiative, the Executive Director Commercial of the Pipeline and Products Marketing Company, Mr. Frank Amego, explained that the scheme was aimed at getting kerosene to the Nigerian masses who use the product as their domestic cooking fuel at the correct price.