BREAKING: Nigeria slashes petrol pump price to N121.50 per litre

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  • Marketers insist on free market as PPPRA fixes N102.13 per litre ex-depot price

 

Nigeria, Africa’s biggest crude exporter, on Monday released a new price band for retail stations across the country in which it slashed the least pump price for Premium Motor Spirit (PMS) also known as petrol to N121.50, about $3, per litre.

The country’s agency in charge of fuel price, Petroleum Products Pricing Regulatory Agency (PPPRA), in a memo with reference number A.4/9/017/C.2/IV/701 addressed to marketers but obtained by *Platforms Africa*, advised that the product must not be sold outside the band of N121.50 to N123.50 per litre

It also fixed the band for ex-depot price at between N102.13 and N103.13 per litre.

The memo entitled: “Guiding Price for Premium Motor Spirit (PMS) in the month of June,” and dated May 31 reads: “Please recall the recent 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.

 

PPPRA memo announcing a new price band for June 2020

“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 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.”

Nigeria with profile of highest exporter of crude oil in Africa, ironically, export about 100 per cent of refined products due largely to corruption and epilepsy of its three refineries in Port Harcourt, Warri and Kaduna.

Marketers who operate within the tough business climate have, for the umpteenth time, call for total deregulation (free market) of the downstream sector in which the government ceases to “dictate” the price of the product.

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