PPMC set new depot petrol price at N168

Petroleum Price Marketing Company (PPMC), a subsidiary of the Nigerian National Petroleum Corporation, raised the ex-depot price of petrol, to N155.17 per litre from N147.67 per litre. In an internal memo dated November 11, 2020, and signed by Tijjani Ali, PPMC said the new ex-depot price would take effect from Friday. 

The ex-depot price is the price at which the product is sold by the PPMC to marketers at the depots. In its PMS price proposal for November, the PPMC put the landing cost of petrol at N128.89 per litre, up from N119.77 per litre in September/October. It said the estimated minimum pump price of the product would increase to N161.36 per litre from N153.86 per litre.

The National Operation Controller, Independent Petroleum Marketers Association of Nigeria, Mike Osatuyi said the implication of the increase in the ex-depot price is that there is going to be an increase in the pump price. We are expecting the pump price to range from N168 to N170 per litre. “Crude oil price is going up,” he added. 

Following the deregulation of petrol prices in September, marketers across the country adjusted their pump prices to between N158 and N162 per litre to reflect the increase in global oil prices. Petrol price band had also risen from N121.50–N123.50 per litre in June to N140.80-N143.80 in July and N148-N150 in August. The Minister of State for Petroleum Resources, Timipre Sylva, said in September that the government had stepped back in fixing the price of petrol, adding that market forces and crude oil price would continue to determine the cost of the product.