Following removal of fuel subsidy on premium motor spirit (PMS)
otherwise called petrol, the Petroleum Products Marketing Company
(PPMC) has announced reduction in the ex-depot price for petrol and
automotive gas oil (AGO), otherwise called diesel.
The new ex-depot price for petrol is now N108 per litre for the
month of May while ex-depot price for diesel is now N164 per litre
for same month.
In a memo to oil marketers and other stakeholders in the
petroleum marketing business, dated May 5, 2020, titled: ‘Re: PPMC
Petroleum Products Prices for May 2020,’ the PPMC reduced the
ex-depot price for diesel to N164 per litre for depots in Lagos and
N166 per litre for depots in Oghara, Calabar, Port Harcourt, among
others.
The PPMC said in the memo that the new prices would take effect
from May 5, 2020.
Confirming the new price change, the spokesman of NNPC, Dr.
Kenny Obateru, stated that the price change for petrol from N113.28
per litre to N108 per litre is a marketing strategy to make more
sales while complying with the PPPRA price template.
“We reviewed the ex-depot price to enable us make more sales.
For AGO, it is a deregulated product and as such is its prices are
determined by market forces,” he said.
The ex-depot price is the price at which the depot owners sell
the commodity to retail outlets across the country. Though, the
PPMC did not state the Expected Open Market Price of the commodity,
which is the pump price of the price, but over the years, the
difference between the ex-depot price and the pump price of petrol
is usually around N9 per litre.
This means that at an ex-depot price of N108 per litre, the pump
price of PMS should be around N115 per litre, N10 lower than the
current highest price band of N125 per litre.
The current retail price of petrol is N123.50 per litre at NNPC
Retail outlets and N125 per litre at private petrol stations, while
diesel is sold around N200 per litre.
It would be recalled that the NNPC GMD, Mallam Mele Kyari, had
announced that era of fuel subsidy is gone forever recently.
Following removal of fuel subsidy on premium motor spirit (PMS)
otherwise called petrol, the Petroleum Products Marketing Company
(PPMC) has announced reduction in the ex-depot price for petrol and
automotive gas oil (AGO), otherwise called diesel.
The new ex-depot price for petrol is now N108 per litre for the
month of May while ex-depot price for diesel is now N164 per litre
for same month.
In a memo to oil marketers and other stakeholders in the
petroleum marketing business, dated May 5, 2020, titled: ‘Re: PPMC
Petroleum Products Prices for May 2020,’ the PPMC reduced the
ex-depot price for diesel to N164 per litre for depots in Lagos and
N166 per litre for depots in Oghara, Calabar, Port Harcourt, among
others.
The PPMC said in the memo that the new prices would take effect
from May 5, 2020.
Confirming the new price change, the spokesman of NNPC, Dr.
Kenny Obateru, stated that the price change for petrol from N113.28
per litre to N108 per litre is a marketing strategy to make more
sales while complying with the PPPRA price template.
“We reviewed the ex-depot price to enable us make more sales.
For AGO, it is a deregulated product and as such is its prices are
determined by market forces,” he said.
The ex-depot price is the price at which the depot owners sell
the commodity to retail outlets across the country. Though, the
PPMC did not state the Expected Open Market Price of the commodity,
which is the pump price of the price, but over the years, the
difference between the ex-depot price and the pump price of petrol
is usually around N9 per litre.
This means that at an ex-depot price of N108 per litre, the pump
price of PMS should be around N115 per litre, N10 lower than the
current highest price band of N125 per litre.
The current retail price of petrol is N123.50 per litre at NNPC
Retail outlets and N125 per litre at private petrol stations, while
diesel is sold around N200 per litre.
It would be recalled that the NNPC GMD, Mallam Mele Kyari, had
announced that era of fuel subsidy is gone forever recently.