UPDATE: Petrol to sell at N123/ltr as PPPRA reviews ex-depot price

The Petroleum Products Pricing Regulatory Agency(PPPRA) has reviewed the existing Premium Motor Spirit (PMS) pump price band between N121.50 and N123.50 per litre for the month of June.

It also pegged the ex-depot price band at  N102.13 and N104.13/litre, weeks after the Nigerian National Petroleum Corporation (NNPC) announced its reduction from N113.28k to N108.00K per litre.

The ex-depot price is a  price at which depot owners sell the commodity to retail outlets across the country.

This was conveyed in a memo to all Petroleum Products Marketers dated 31st May, which was exclusively obtained by the Tribune Online from Industry sources in Abuja.

In the document, the PPPRA also put the ex-depot collection price at  N109.78-N111.78/litre.

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The memo titled: “Guiding Price for Premium Motor Spirit (PMS) in the month of June,” advised marketers to operate within the band prices.

It read: “Please recall the recently approved pricing regime which became effective 19 of March 2020 and the provision for the establishment of a monthly price band within which Petroleum marketers are expected to sell PMS at the retail stations.

“After a review of prevailing market fundamentals in the month of May and considering marketers realistic operating costs as much as practicable, we wish to advise of a new PMS guiding pump price with a corresponding ex-depot price for the month of June 2020, as follows;

“Price band N121.50 – N123.50 per litre, Ex-Depot Price N102.13 – N104.13 per litre,  Ex-Depot for collection N109.78 – N111.78 per litre.

“All marketers are advised to operate within the indicative prices as advised by the PPPRA.”

President Muhammadu Buhari had in March, approved the reduction in petrol price from N145 per litre to about N125 due to slump in the international crude oil price from $60 to $30.

Also in May, the Nigerian National Petroleum Corporation (NNPC) announced a reduction in the ex-depot price of PMS from N113.28k per litre to N108.00K per litre across all its ex-depot.

It said the review is in line with the new pricing template that allows for an adjustment of petrol to reflect the situation in the global crude oil market.