Tuesday, May 18, 2021
PPPRA Announced N125 Per Litre For MPS

Following the directive of the Federal Government that it reduce the price of Premium Motor Spirit, also known as petrol, the Petroleum Products Pricing Regulatory Agency, PPPRA, on Wednesday evening announced N125 per litre as the new price of the commodity, effective March 19, 2020.

The Nigerian National Petroleum Corporation, NNPC, had earlier in the day announced that its retail stations, NNPC Retail, across the country would sell the commodity at N125 per litre.

In a statement in Abuja, Executive Secretary of the PPPRA, Abdulkadir Saidu, also stated that going forward, PPPRA would continue to monitor trends in market fundamentals and announce a monthly Guiding/Expected Open Market price at the beginning of every month, effective 1st April, 2020.

He said, “The recent plunge in the price of crude oil and petroleum products occasioned by the outbreak of Coronavirus pandemic and slowing global oil demand, has led to a drop in the PMS Expected Open Market Price (EOMP) below the approved pump price cap of N145.00 per litre, indicating over 30 per cent drop below the official pump price. However, the average EOMP for the months of January and February 2020 were N175.52 per litre and N156.02 per litre respectively.

“Furthermore, it was based on the 2016 approved PMS price cap and taking into account the approved distribution margins on the pricing template that NNPC, being the sole importer of PMS, set its previous Ex-Coastal price at N117.60 per litre.

“Consequent on the new NNPC Ex-Coastal price and taking into consideration all existing approved margins on the PPPRA pricing template, the new pump price of PMS is N125.00 per litre, effective 19th March, 2020. This new price will guide PMS pricing in Nigeria for the rest of the month of March, 2020.

“Consequent on the new NNPC Ex-Coastal price and taking into consideration all existing approved margins on the PPPRA pricing template, the new pump price of PMS is N125.00 per litre, effective 19th March, 2020. This new price will guide PMS pricing in Nigeria for the rest of the month of March, 2020.

“It is expected that the new price regime will emplace a more transparent pricing model, stimulate investment growth in the downstream sector and encourage resumption of products importation by Oil Marketing Companies (OMC), translating to more job creation as many depots and facilities that are presently dormant will now become active.

“The directive of Government to the NNPC to reduce the Ex-Coastal price of PMS, despite the fact that the current stock of product was imported during the months of January and February, 2020 is highly commendable, although this action is not without costs to the Corporation.”

Saidu expressed optimism that the recent efforts by the Federal Government to develop an alternative fuels market would come to fruition in the medium term while various initiatives are being undertaken to deepen the utilization of Liquefied Petroleum Gas, LPG, and Compressed Natural Gas, CNG, as autogas in Nigeria.

He further reiterated the efforts of the government  to build a more vibrant and sustainable downstream sector.

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