Uche Usim, Abuja
The Federal Government on Wednesday responded to the rising crude oil price in the international market by hiking the petrol price from the current N123.50 per litre to a price band of between N140.80 and N143.80 per litre for July.
The increase was contained in the July pricing guideline for Premium Motor Spirit (Petrol) by the Petroleum Products Pricing and Regulatory Agency (PPPRA) sent to oil marketers.
The memo entitled “Advised price for PMS for July”, dated July 1, was signed by PPPRA Executive Secretary Mr Abdulkadir Saidu.
It reads: ‘Please recall the provision for the establishment of a monthly price band within which petroleum marketers are expected to sell PMS at the retail stations based on the existing price regime
“After a review of the prevailing market fundamentals in June and considering marketers’ realistic operating cost, as much as practicable, we wish to advise a new PMS pump price band of N148.80-N143.8 per litre for July 2020.
‘Kindly note that ex-depot for collection includes the statutory charges of bridging fund, marine transport average, National Transport Allowance (NTA) and the administrative charge.
“All marketers are advised to operate within the indicative prices as advised by PPPRA.’
Oil prices inched higher Wednesday, continuing a recent rebound.
Brent crude, on which Nigeria’s oil is benchmarked, has risen up to $40.1/barrel recently, though there are fears of an imminent crash as COVID-19 pandemic intensifies.
In June, the PPPRA advised marketers to sell the commodity within the price band of N121.50 and N123.50 per litre.
The ex-depot price of the commodity for June was between N102.13 and N104.13 per litre, while the ex-depot price for collection ranges from N109.78 and N111.78 per litre.
In the memo to the marketers, the PPPRA reminded them of the recently approved pricing regime and provision for the establishment of a monthly price band for PMS, which became effective on March 19.
Recently, the Minister of State, Petroleum Resources, Mr Timipre Marlin Sylva, said that oil marketers alone would not be allowed to determine the price of the commodity despite the fact that the product has been deregulated.
He said the move stems from the urgent need to protect the public from undue exploitation and inordinate profiteering by importers.