BY Oluseyi Awojulugbe
The Petroleum Products Marketing Company, a subsidiary of the Nigerian National Petroleum Corporation (NNPC), has increased the depot price of premium motor spirit, better known as petrol.
In a November 11 internal memo signed by Ali Tijjani, the PPMC proposed that the November depot price of petrol be increased to N155.17 from N147.67 per litre.
According to the memo which was subsequently approved, 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.
A price schedule showed that the landing cost of petrol is now N123.89 per litre while the ex-coastal price, which is the price at which the product is sold to depot owners, is now N130.
With a retailer margin of N6.19, PPMC estimates that the minimum pump price would be 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.
Abubakar Maigandi, national vice president of the Independent Petroleum Marketers Association of Nigeria (IPMAN), said the association has directed members to sell at N170 per litre.
“The PPPMC, last midnight, told us that the ex-depot price is now N155.17 per litre. We have directed our marketers to sell for N170 per litre,” he said.
In September, PPMC adjusted the ex-depot price of petrol to N151.56 per litre from N138.62; this translated to an average retail pump price of N161.
In March, the federal executive council approved a monthly review of petroleum products prices in line with the international market prices following the impact the COVID-19 pandemic.
At the time, it said this was a step in deregulating the downstream sector as the Nigerian National Petroleum Corporation (NNPC) would no longer absorb the difference between the landing cost and the pegged retail price.
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