The ex-depot price of Premium Motor Spirit (PMS) was slashed to N108 per litre on Wednesday May 6, by the Petroleum Products Marketing Company (PPMC).
The move which reflected a drop in the price of oil, is also expected to result in a lower pump price at petrol stations by end of this week.
Though a specific pump price has not been agreed, however in the last few years the difference between the ex-depot price and the pump price of petrol is usually around N9 per litre. This has led to speculation of petrol selling for N117 by the end of the week.
A memo addressed to oil marketers and other stakeholders in the petroleum marketing business, with the subject: ‘Re: PPMC Petroleum Products Prices for May 2020,’ also revealed that the PPMC slashed the ex-depot price of Automotive Gasoline Oil also known as diesel, to N164 per litre for depots in Lagos and N166 per litre for depots in Oghara, Calabar, Port Harcourt, among others.
The Group General Manager, Group Public Affairs Division of the Nigerian National Petroleum Corporation (NNPC), Dr. Kennie Obateru said;
“The N108 new PPMC ex-depot price of PMS from N113.28 is a marketing strategy to make more sales while complying with PPPRA price template. We reviewed the ex-depot prices to enable us make more sales.
“For AGO, it’s a deregulated product and as such its prices are determined by market forces.”
Vanguard reported that the responsibility of fixing petroleum products prices lies solely with the Petroleum Products Pricing Regulatory Agency (PPPRA), but the agency is yet to release the pricing templates for May 2020, as against its promise that the templates would be released on a monthly basis, to serve as guide for products pricing for each month.