As residents of Ekiti and Ondo States continue to buy Petrol at high price, members of the Petroleum Dealers and Owners Association in the two States have explained why they cannot sell fuel at the N87.000 price approved by government.

As at now, in Akure and Ado-Ekiti, which are the Capitals of the two states, fuel price is between N110 to N120.

The position of the association was expressed at a news conference addressed by members of the association against the sealing of their stations by the Department of Petroleum Resources (DPR), for selling fuel above the government recommended price.

Addressing journalists, the Chairman of the association, Mr Jimi Oladapo said due to non availability of products at the depots of the Nigeria National Petroleum Corporation (NNPC), members had been sourcing products through other means at attendant cost.

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

According to the petroleum dealers, true cost per litre of petrol varies from the source.

Specifically, Adedapo said total cost per litre of fuel from Lagos ranges between N104 and N108 while the landing cost per litre from Ogara/Warri in Delta State is between N105 and N108.00 per litre.

He said 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 N87.00 per litre”, he said.

Adedapo also disclosed that even when NNPC gives out fuel, the cost to them at their stations are above N87.00 per litre.

“One wonders how as businessmen with responsibilities, one can sell below cost price. The ordinary law of supply and demand will not allow it “, he said.

Adedapo lamented that despite their plights as highlighted, the regulatory authorities most especially, the Department of Petroleum Resources (DPR), in Akure rather than facing the reality of the situation, have resulted to sealing of stations in Ondo and Ekiti state and vowed not to open until they complied with directives of selling at the government recommended price.

“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.

The petroleum dealers said the so-called subsidy was nothing but fraud, saying it had become a conduit pipe through which nation’s resources were being siphoned.

“Let the marketers go and source for the products, if this is done, fuel cannot be up to N87.00 and it will further go down to about N50.00 due to the falling crude oil price.

“Everybody knows that kerosene is being subsidised, but how many people get it to buy at N50 per litre recommended price.

“We want members of the public to help us tell the Federal Government to remove the fuel subsidy so that we can sell fuel at appropriate price and remain in business. Subsidy is a fraud”, Adedapo stated.

He, therefore, told the people of Ondo and Ekiti states to prepare for the hard times on fuel supply because they cannot sell below the cost price.