Wednesday, 5 August 2020

Petrol Pump Price to Increase as PPMC adjust Ex-depot price

UKOREBI Esien | 5th August 2020 

Price of petrol is likely to increase in Nigeria as the Petroleum Products Marketing Company, PPMC, has fixed the ex-depot price of Premium Motor Spirit, PMS, also known as petrol, at N138.62 per litre.

Ex-depot price which is said to be the price at which depot owners sell the commodity to retail outlets, recently is normally around N15 lower than the pump price, as the marketers would add cost of transporting the commodity from the depots to their retail outlets, in addition to other costs, such as marketers margin among others.

According to a memo signed by Mohammed Bello, Manager Sales, PPMC, the new price would come into effect from August 5, 2020. The said memo also reveals that ex-coastal price of the commodity, which is the price at which the product is sold to depot owners, at N113.70 per litre.

Meanwhile,  PPMC also fixed the Ex-depot price for Automotive Gasoline Oil, AGO, also known as diesel, at N160 per litre and N165 per litre, for depots in Lagos and Oghara respectively, while ex-depot price for kerosene was put at N160 per litre.

From the look of things, it's definitely expected that oil marketers would adjust their pump price, speculations are that the new pump price maybe between N145 to N155 per litre.

Although, Petroleum Products Pricing Regulatory Agency, PPPRA, the agency saddled with the responsibility of announcing changes in fuel price or providing guidance on the new price, is yet to announce the guiding price of PMS for August 2020, fuelling speculations as to the actual amount the commodity would be sold.