PPMC, Marketers Ignore New Ex-Depot Price of Petrol

The Pipelines and Products Marketing Company (PPMC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC) and most of the oil marketing companies were yet to implement the new ex-depot prices of petrol at the weekend, ThisDay reports.

In most of the depots where the PPMC is selling its imported products, the ex-depot price is still higher than the N77 approved by the government. While PPMC was selling at ex-depot price of N85 per litre at Capital Oil Depot and N86 at Heyden Petroleum Depot, none of the private marketers was selling at N77.

FG Approves New Petrol Prices: NNPC to Sell at N86/litre, Marketers N86.50k

Farouk Ahmed,

• New prices to last from Jan 1 to March 31
• PPPRA reviews pricing template, grants import permits for 3mmt of fuel for Q1
• NLC warns against removal of fuel subsidy under any guise

The federal government, through the Petroleum Products Pricing Regulatory Agency (PPPRA), on Tuesday approved new pump prices of petrol starting from January 1 to March 31, 2016 under a revised pricing template.

Under the new pricing template, the government approved two pump prices – one for the retail outlets of the Nigerian National Petroleum Corporation (NNPC), which will sell at N86 a litre, and another for retail outlets operated by private business concerns in the downstream petroleum sector, which will dispense at N86.50 a litre.

The Executive Secretary of the PPPRA, Farouk Ahmed, disclosed this to journalists in Abuja. He said NNPC was expected to sell petrol at N86 per litre to customers at its retail outlets, while other operators would sell at N86.50k per litre.

New Petrol Price Template to Be Announced in January 2016 

Contrary to the perception created on Christmas day that the price of petrol would be reduced to N85 per litre effective January 1, the Minister of State for Petroleum, Dr. Emmanuel Ibe Kachikwu, has clarified that its official price would be announced next month, ThisDay reports.

He added that at the current price of crude oil, the subsidy element had been eliminated, but the price of petrol had not been deregulated nor would it be deregulated come January. “It will be adjusted within the modulating band of N87 per litre to N97 per litre in accordance with the international price of crude oil,” he explained.

According to him, the price of petrol could go either way, “it may be increased above the current selling price or may be reduced below the current selling price all things being equal”. “If there is an increase or decrease in the price of crude oil, we will make the necessary adjustment, so in January 2016, we will announce the new price of petrol in accordance with trends in the market.”