By Obas Esiedesa
The pump price of petrol is expected to fall from the current N123.50 per litre following the reduction in ex-depot price by the Nigerian National Petroleum Corporation (NNPC) from N113.28k per litre to N108.00K per litre across all its products loading facilities as well as in its thru put operations.
The ex-depot price the amount petrol marketers pay to obtain the products from depots. This in turn affects the price at petrol stations across the country.
The corporation’s Group General Manager, Group Public Affairs Division, Dr. Kennie Obateru, in statement in Abuja 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 (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.
With the ex-depot price reduction, the Petroleum Products Pricing Regulatory Agency’s (PPPRA) is expected to announce a new pump price of petrol soon.
The Federal Government had March announced the removal of petrol subsidy with a new price modulation policy.
Consumers have been a expecting a new reduced price of petrol currently sold at N123.50 per litre following drastic fall in the price of crude oil in the international market.