The Petroleum Products Marketing Company (PPMC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC), has raised the ex-depot price of Premium Motor Spirit, also known as petrol, to N155.17 per litre from N147.67 per litre.
Recall that, in March, the Federal Executive Council (FEC) approved a monthly review of petroleum products’ prices in line with the international market prices following the impact of the COVID-19 pandemic.
It had said this was a step in deregulating the downstream sector as the NNPC would no longer absorb the difference between the landing cost and the pegged retail price.
In an internal memo with reference number PPMC/C/MK/003, dated November 11, 2020, and signed by Tijjani Ali, the PPMC disclosed that the new ex-depot price would take effect from Friday, November 3, 2020.
The ex-depot price is the price at which the product is sold by the PPMC to marketers at the depots.
The PPMC puts the landing cost of petrol at N128.89 per litre, up from N119.77 per litre in September/October.
It said the estimated minimum pump price of the product would increase to N161.36 per litre from N153.86 per litre.
Marketers are expected to add the cost of transporting the commodity from the depots to their retail outlets, in addition to other costs, to determine the final pump price, which may end up between N168 and N170.
Following the deregulation of petrol prices in September, marketers across the country adjusted their pump prices to between N158 and N162 per litre to reflect the increase in global oil prices.
Petrol price band had also risen from N121.50–N123.50 per litre in June to N140.80-N143.80 in July and N148-N150 in August.
(C) Control TV 2020.
