The Petroleum Product Marketing Company (PPMC), a subsidiary of the Nigerian National Petroleum Corporation, NNPC has officially yesterday increased the ex-depot price of Premium Motor Spirit, PMS popularly referred to as Petrol, to N155.17 per litre from N147.67 per litre.
PPMC disclosed this in its official internal memo with reference number PPMC/C/MK/003, dated November 11, 2020, signed by Tijjani Ali, and shall take effect from Friday, 13th Nov. 2020.
Accordingly, an ex-deport price is a price the Major marketers buy from the PPMC.
A look at the PMS Price proposal for the month of November as proposed by the PPMC for a landing cost was put at N128.89 as against the former N119.77 per litre that was used in September/October.
Consequently, the increase in the N7 ex-depot price would mean a corresponding increase in the fuel pump price, according to independent Petroleum Marketers Association of Nigeria, IPMAN, operation controller, Mike Osatuyi.
IPMAN said as the federal government has fully deregulated the price of crude oil according to the market forces, any increase in the price of crude oil would translate to increase in pump price as is happening now.
Recall, Timipre Sylva, the Minister of Petroleum resources had in September hinted that the federal government has left the fixing of petroleum price to the market forces.
The petroleum price in Nigeria has witnessed the gradual increase of the pump price from N121.50–N123.50 per litre in June to N140.80-N143.80 in July and N148-N150 in August.