Uche Usim, Abuja
The pump price for petroleum may be further reduced as the Nigerian National Petroleum Corporation (NNPC) announced on Wednesday a reduction in the ex-depot price of the product from N113.28k to N108.00K per litre across all its products loading facilities as well as in its throughput operations.
The commodity currently sells at N125/litre and the Petroleum Products Pricing Regulatory Agency (PPPRA) has repeatedly assured Nigerians that it would constantly review petrol prices to reflect the current realities in the international oil market.
The Managing Director of the Petroleum Products Marketing Company (PPMC), Musa Lawan, noted in a statement that the new ex-depot price of Premium Motor Spirit (PMS) reflects the company’s market strategy to make more sales while complying with the PPPRA 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 pricing 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 Automotive Gas Oil (AGO) [Diesel], being already deregulated, prices are determined by market forces.
On March 18th, the NNPC reviewed its PMS ex-coastal, ex-depot and NNPC Retail pump prices.
Thus, effective March 19th, NNPC ex-coastal price for PMS was reviewed downwards from N117.6/litre to N99.44/litre, while the ex-depot price was reduced from N133.28/litre to N113.28/litre.