The Petroleum Products Pricing Regulatory Agency (PPPRA) says the import price of petrol is now lesser than N145.
In a statement released on Monday, the agency attributed the reduced prices to a drop in crude oil prices.
The statement, which was signed by Apollo Kimchi, its spokesman, said independent oil marketers might soon begin importation of oil products.
“The Petroleum Support Fund scheme (subsidy) regime ended in December 2015. There was no provision for subsidy in the national budget of 2016, 2017 and 2018 and as such no subsidy was computed by the agency since 2015,” the statement read.
“Under this scheme, the agency regulates petroleum products supply and distribution through the issuance of quantity notification and LAYCAN to NNPC (Nigerian National Petroleum Corporation) and OMCs (Oil Marketing Companies). It also monitors discharges at various facilities nationwide.
“Due to challenges of Premium Motor Spirit pricing in fourth quarter 2017, OMCs withdrew from the importation of the product. NNPC as the supplier of last resort stepped in to bridge the supply gap and has since then ensured the adequate supply of the product to meet domestic demand.
“According to NNPC, PMS import price differential resulting in under-recovery is being managed by the corporation in line with the Act that establishes it.
“However, with the recent plunge in the price of crude oil in the international market, the agency has observed a downward trend in the Expected Open Market Price of PMS, below the government approved pump price of N145/litre.”
According to PPPRA, the average daily supply of petrol in 2016 and 2017 was 50 million litres while the estimated average for 2018 was 53 million litres.