Fuel price falls to N112.26 per litre as oil market records much instability

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The price of Premium Motor Spirit, also known as petrol, has crashed from N145 to N112.26 per a litre following the continued fall in the price of crude oil.

According to in the Petroleum Products Pricing Regulatory Agency, PPPRA, the price of fuel dropped to the current level as refiners now incur less cost than in the regime of relatively high price.

The PPPRA puts the Landing Cost of the commodity in Nigeria, as at January 31 was N141.07 per litre, dropping by 34.2 per cent to N92.89 per litre as at Wednesday.

This indicates that at the current regulated price of N145 per litre, the Federal Government is making a gain of 32.74 per litre, amounting to N1.309 billion daily, as the nation’s daily consumption is estimated at 40 million litres.

The PPPRA stated that cost plus freight of PMS stood at $369.62 per metric tonne, an equivalent of N84.60 per litre; while lightering expenses stood at N2.75 per litre and Nigerian Ports Authority charges stood at N0.84 per litre.

It also puts the Nigerian Maritime Administration and Safety Agency, NIMASA, charges at N0.22 per litre; jetty throughput charge N0.60; storage charge N2; and financing cost N1.92; putting the landing cost of PMS at N92.89 per litre.

The PPPRA also puts the Expected Open Market Price, EOMP, of the commodity at N112.26 per litre.

 

However, the PPPRA template, which showed that the ex-depot price stands at N125.63 per litre; while the Ex-depot price for collection stood at N133.28 per litre, added that Ex-depot for collect price comprise Ex-depot price, inclusive of bridging allowance, Marine Transportation Allowance, MTA, and administrative charge.

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