The Petroleum Products Marketing Company, a subsidiary of the Nigerian National Petroleum Corporation (NNPC), has increased the depot price of premium motor spirit (PMS), more popularly known as petrol.
This was made known in a November 11 internal memo, which was signed by Ali Tijjani. In the memo, the PPMC proposed that the November depot price of petrol be increased to N155.17 from N147.67 per litre, and that the new price takes effect on Friday, November 13, 2020.
IN CASE YOU MISSED IT, Nigeria needs political awareness – Ezekwesili
The depot price of PMS refers to the price at which depot owners sell the fuel to retail outlets.
According to a price schedule, the landing cost of petrol is now N123.89 per litre while the ex-coastal price- the price at which the product is sold to depot owners- is now N130.
With a new retailer margin of N6.19, PPMC estimates that the minimum pump price would be N161.36 per litre.
DID YOU KNOW YOU CAN CHECK ABOKIFX EXCHANGE RATE TODAY IN NIGERIA TODAY?
Marketers will add the cost of transporting the commodity from the depots to their retail outlets, in addition to other costs, such as marketers’ margin, among others to determine the final pump price, which may between N168 and N170.
In September, PPMC adjusted the ex-depot price of petrol to N151.56 per litre from N138.62; this translated to an average retail pump price of N161.
In March, the federal executive council approved a monthly review of petroleum products prices in line with the international market prices following the impact the COVID-19 pandemic.
At the time, it said this was a step in deregulating the downstream sector as the Nigerian National Petroleum Corporation (NNPC) would no longer absorb the difference between the landing cost and the pegged retail price.
VISIT ABOKIFX FOR DOLLAR TO NAIRA TODAY