By Felix Kassim
The Federal Government says it has reduced the retail pump price of petrol from N123.50k per litre to N121.50k, a difference of N2.00.
This was made known in a circular issued by the Petroleum Products Pricing Regulatory Agency (PPPRA) to marketers of the product.
PPPRA, which is the regulatory agency for sale of Premium Motor Spirit (PMS) commonly known as petrol, said after reviewing market mechanisms, petrol price should now go for between a price band of N121.50 and N123.50.
The pump price of petrol per litre before the announcement was N123.50.
The circular read: “Please recall the recently approved pricing regime which became effective March 19, 2020, and the provision for the establishment of a monthly price band within which petroleum marketers are expected to sell PMS at the retail stations.
“After a review of prevailing market fundamentals in the month of May and considering marketers realistic operating costs as much as practicable, we wish to advise of a new PMS guiding pump price with corresponding ex-depot price for the month of June 2020, as follows; price band N121.50 – N123.50 per litre.
“Ex-Depot price N102.13 – N104.13 per litre. Ex-Depot for collection N109.78 – N111.78 per litre. All marketers are advised to operate within the indicative prices as advised by the PPPRA.”
The LABOUR reports that the Federal Government, in March 2020, announced that the retail price of petrol would be adjusted monthly to reflect realities in the global crude oil market.
While the Federal Government had reduced the pump price from N125.00 to N123.50 in April 1, 2020, only the ex-depot price was reviewed downwards to N108 on May.