Consumers of petrol in the country would pay a 16.4 per cent increase in the price of petrol for the month of July, the Petroleum Products Pricing Regulatory Agency (PPPRA) announced on Wednesday.
The agency said the approved new retail price for petrol for the month will vary between N140.80 and N143.80 per litre price band.
The new price arrangement replaces the previous price band of N121.50 and N123.50 per litre announced by the agency for June 2020.
“After a review of the prevailing market fundamentals in the month of June, and considering marketers’ realistic operating costs as well as practicable, we (PPPRA) wish to advise a new PMS (premium motor spirit) pump price band of N140.80-N143.80 per litre for the month of July 2020 the new retail price band for premium motor spirit (PMS), popularly called petrol, for June 2020.
“Kindly note that the ex-depot price for collection includes the statutory charges of bridging fund, marine transportation average, National Transport Allowance (NTA) and an administrative charge. All marketers are advised to operate within the indicative prices as advised by the PPPRA.”
The new price band was contained in a memo No. PPPRA.4/9/017/C.2/IV/705 the agency sent to petroleum products marketers on Wednesday, July 1.
With the new price, the implication is that all petroleum products marketing companies throughout the country are permitted to sell at any price with the approved price band of N140.80 (lower limit) and N143.80 (upper limit) during the month.
The lower limit represents the least retail price per litre a marketer can dispense fuel, while the upper limit is the ceiling retail price the marketer cannot exceed in dispensing the product.
In line with the approved price modulation template, marketers can sell the product at any price within the band during the period.
The PPPRA did not announce all the details on how it arrived at the new price band, including the ex-depot price band for depot owners or terminal operators for the month as well as all other components of the fuel pricing template.
The ex-depot price band for the previous month was N102.13 and N104.13 per litre, while the ex-depot price band for marketers’ collection was N109.78 and 111.78 per litre.
The ex-depot price is the price depot owners or terminal operators can lift petroleum products from the Nigerian National Petroleum Corporation (NNPC) depots for distribution at the retail outlets.
The increase in prices is believed to be a reflection of the global rise in the price of crude oil to around $40 per barrel from less than $30 it was sold over a month ago.