SWITZERLAND, MAY 07 – Petrol is likely to sell for around N117 per litre in Nigeria after the Petroleum Price Monitoring Committee(PPMC) reduced the ex-depot price of Premium Motor Spirit(PMS), also know as petrol.
The Nigerian National Petroleum Corporation(NNPC) disclosed this in a statement issued on Wednesday evening.
The statement indicates that the NNPC has announced a reduction in the ex-depot price of petrol from N113.28k per litre to N108.00K per litre across all its products loading facilities as well as in its through-put operations.
Although the PPMC did not state the Expected Open Market Price of the commodity, which is the pump price at petrol stations, over the years, the difference between the ex-depot price and the pump price of petrol is usually around N9 per litre, Today’s Echo gathers.
The statement quoted the Managing Director of the Petroleum Products Marketing Company (PPMC), Musa Lawan as saying that the new ex-depot price of Premium Motor Spirit (PMS), otherwise called petrol, reflects the company’s market strategy to make more sales while complying with the Petroleum Products Pricing Regulatory Agency’s (PPPRA) price template.
Lawan explained that the new price regime would enable PPMC to boost its sales volumes from the billions of litres of Petrol it has in storage while providing affordable price to millions of customers.
He said the new price was arrived at after extensive review of market realities by the PPMC internal price review unit.
The PPMC MD however pointed out that Automotive Gas Oil (AGO), otherwise called diesel, being already deregulated, its prices are determined by market forces.
On March 18, 2020, the NNPC reviewed its PMS ex-coastal, ex-depot and NNPC Retail pump prices.
Thus, effective 19 March 2020, NNPC ex-coastal price for PMS was reviewed downwards from N117.6/litre to N99.44/litre while ex-depot price was reduced from N133.28/litre to N113.28/litre.