A memo, seen by PREMIUM TIMES and dated November 11, showed that the new price regime becomes effective on November 13, 2020.
Nigerians may need to brace up for a fresh regime of hike in
petroleum prices across the country in the coming days, PREMIUM TIMES can
report.
This is because the Petroleum Products Marketing Company
(PPMC) has adjusted the ex-depot price of Premium Motor Spirit, also known as
petrol, from N147.67 to N155.17.
The PPMC is a subsidiary of the Nigerian National Petroleum
Corporation, NNPC, and currently imports almost all of Nigeria’s petrol.
A memo, seen by PREMIUM TIMES and dated November 11, showed
that the new price regime becomes effective on November 13, 2020.
The memo, signed by Ali Tijani of the PPMC, showed that the
landing cost average for PMS has increased from N119 in September and October
to N123 in November.
Similarly, the ex-coastal selling price for the month has
also increased to N130 in November, from N125 in the previous months.
In the same vein, the ex-depot price without collection shot
up from N138 in September and October to N142 in November.
The ex-depot price with collection, which ultimately
influences pump price, shot up to N155.17.
The ex-depot price is the price at which the product is sold to marketers at the depots.
With a retailer margin of N6.19, the PPMC pegged the minimum
pump price at N161 in November, from the N153 peg announced for September and
October.
By implication, effective November 13, Nigerians may begin
to buy fuel from filling stations at prices between N172 and N175, or higher.
In September, the pump price of petrol hit N161 per litre
after the government increased the price at which it sells the product to
marketers from N138.62 per litre to N147.67.
The development was met with criticisms and outrage among
Nigerians as many lamented the bad economic conditions made worse by the price
hike.
The government at the time increased the petrol price
shortly after power distribution companies announced a hike in electricity
tariffs.
Many Nigerians, struggling with the economic realities of
COVID-19 disruption, considered the move insensitive and harsh.
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