The pump price of Premium Motor Spirit (PMS) otherwise called petrol may settle between N168 to N170 per litre as the Nigerian National Petroleum Corporation (NNPC) increased the wholesale price of the product from N147 to N155.
The increase is coming despite the dwindling price of crude oil at the international market and the somewhat static state of the exchange rate from the last increase.
A circular dated November 11 from the Pipelines and Product Marketing Company (PPMC) of the NNPC had informed petrol marketers of the changes in wholesale price otherwise called ex-depot rice.
The letter, with reference number PPMC/C/MKT/003, signed by Ali Tijani was approved by the management on November 12 as the price change was detailed to take effect from November 13.
Nigeria had earlier announced deregulation of the downstream segment of the petroleum industry as the government suspended a subsidy regime allegedly covered in corruption and secrecy.
Although the pump price of petrol was reduced immediately government deregulated the market following the low price of crude at the international market.
The price has, however, risen steadily from June. The price band rose from N121.50–N123.50 per litre in June to N140.80-N143.80 in July and N148-N150 in August.
In September pump prices rose further to N158 and N162 per litre. The recent ex-depot is projected to increase the pump price to about N170.
The National Operation Controller, Independent Petroleum Marketers Association of Nigeria (IPMAN), Mr Mike Osatuyi, in a telephone interview with Punch also said the over N7 increase in ex-depot price would translate into an increase in pump prices.
He said, “The implication of the increase in the ex-depot price is that there is going to be an increase in the pump price. We are expecting the pump price to range from N168 to N170 per litre.”
KanyiDaily recalls that President Muhammadu Buhari had sent the Petroleum Industry Bill (PIB) to the National Assembly for consideration about the scrapping of the NNPC.