The ex-depot price of Premium Motor Spirit has increased by the Petroleum Products Marketing company, a subsidiary of the Nigerian National Petroleum Corporation.
This price was increased to N155.17per litre from N147.67 per litre. PPMC disclosed this in an internal memo with reference number PPMC/C/MK/003, dated November 11, 2020, and signed by Tijani Ali.
Inside the memo, it was written as 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.
But in its PMS price proposal for November, PPMC put the landing cost of petrol at N128.89 per litre, from N119.77 per litre in September/October.
However, it said the estimated minimum pump price of the product would be increase to N161.36 per litre from N153.86 per litre.
Mr Mike Osatuyi, the National Operation Controller, Independent Petroleum Marketers Association of Nigeria, said in a telephone interview with our correspondent, over N7 increase in ex-depot price would translate into an increase in pump prices.
He added that they are expecting the pump price to range from N168 to N170 per litre, as the implication of the increase in ex-depot is that there is going to be an increase in the pump price.
He said, crude oil price is rise, and nothing that the Federal Government has fully deregulated petrol prices.
In September, marketers across the county adjusted their pump prices to between N158 and N162 per litre in order to reflect the increase in global oil prices.
While 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.
Timipre Sylva, the Minister of State for Petroleum Resources, said in September that the government had stepped back in fixing the price of petrol, and it really caused a lot in the country.
Adding that market forces and crude oil price would continue to determine the cost of the product.