Petroleum Products Marketing Company, a subsidiary of the Nigerian National Petroleum Corporation (NNPC), has increased depot price of premium motor spirit, better known as petrol from N147.67 per litre to N155.17 per litre.
PPMC disclosed this in an internal memo with reference number PPMC/C/MK/003, dated November 11, 2020, and signed by Tijjani Ali and the new price takes effect on Friday, November 13, 2020.
The ex-depot price is the price at which depot owners sell the commodity to retail outlets, before retailers sell to end users.
In its PMS price proposal for November, the PPMC put the landing cost of petrol at N128.89 per litre, up from N119.77 per litre in September/October.
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It said the estimated minimum pump price of the product would increase from N153.86 per litre to N161.36 per litre.
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, which translated to an average retail pump price of N161.
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National Operation Controller, Independent Petroleum Marketers Association of Nigeria, Mr Mike Osatuyi, speaking to newsmen said the over N7 increase in ex-depot price would translate into an increase in pump prices.
He said;
The implication of the increase in the ex-depot price is that there is going to be an increase in the pump price. We are expecting the pump price to range from N168 to N170 per litre.
He said crude oil price is going up, noting that the Federal Government has fully deregulated petrol prices.
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.
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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.
It would be recalled that the Minister of State for Petroleum Resources, Timipre Sylva, in September said that the government had stepped back in fixing the price of petrol, adding that market forces and crude oil price would continue to determine the cost of the product.
He expressed;
Government is no longer in the business of fixing prices for petroleum products, we have stepped back. Our focus now is on protecting the interest of the consumers and making sure that marketers are not profiteering.
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