The Federal Government has crashed the ex-depot price for Premium Motor Spirit (PMS) also known as petrol to N108 per litre as new price for May 2020. The Petroleum Products Marketing Company (PPMC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC), which declaring this yesterday, also announced N166 per litre as ex-depot price for Automative Gas Oil (AGO) also known as diesel. In a memo signed by PPMC Lead Sale, Mosimi depot, Onya Schola, the agency said that new price was effective from Tuesday, 5th May, 2020.
The memo with reference number PPMC/ MOD/SALE/319 was addressed to all stakeholders including the Major Oil Marketers Association of Nigeria (MOMAN), Inde-pendent Petroleum Marketers Association of Nigeria (IPMAN), Petroleum Products Pricing Regulatory Agency (PPPRA) and the Department of Petroleum Resources (DPR).
“The PPMC has reviewed the ex-depot price of petroleum products as follows: PMS is N108 per litre; AGO in Lagos depot is N164 per litre. And AGO at depot ex-Oghara/Cal/Port Harcourt is N166 per litre,” the memo read. The NNPC in the same vein announced the N5.28 kobo reduction in the exdepot price.
“The ex-depot price of petrol has been reduced from N113.28k per litre to N108.00K per litre across all the products loading facilities as well as in its through put operations,” the corporation’s Group General Manager, Group Public Affairs Division, Dr. Kennie Obateru, said. Managing Director of PPMC, Musa Lawan, said that the new ex-depot price of petrol, reflects the company’s market strategy to make more sales while complying with the PPPRA’s price template.
Lawan explained that the new price regime would enable PPMC to boost its sales volumes from the billions of litres of petrol it has in storage while providing affordable price to millions of customers. He said the new price was arrived at after extensive review of market realities by the PPMC internal price review unit.
The PPMC MD, however, pointed out that AGO, otherwise called diesel, being already deregulated, its prices are determined by market forces. On March 18, the NNPC reviewed its PMS ex-coastal, ex-depot and NNPC Retail pump prices. Thus, effective 19th March, NNPC ex-coastal price for PMS was reviewed downwards from N117.6/litre to N99.44/litre while ex-depot price was reduced from N133.28/litre to N113.28/litre.