Just a Few days the Nigerian National Petroleum Corporation (NNPC) promised there would be no price hike for Premium Motor Spirit, popularly known as petrol in March, the price has hit N212 litre.
On February 28, NNPC spokesman, Kennie Obateru, gave the assurance in a statement, in reaction to the long queues in some states.
“Contrary to speculations of an imminent increase in the price of PMS in the country, the NNPC has ruled out any increment in the ex-depot price of petrol in March”, he noted.
But on Thursday night, the Petroleum Products Pricing Regulatory Agency (PPPRA) released the latest guiding retail price.
In a template published on its website, the agency explained that the increment was due to the market determinants and importation costs.
PPPRA fixed the lower band of the new fuel price at N209.61 per litre and upper band at N212.61 per litre.
The price was calculated on the approved average importer & exporter (I&E) Naira exchange rate per dollar of N403.80. The crude oil price at the international market is currently $70/barrel.
PPPRA said the average price per ton of the commodity is about $561.96, or N169.22 per litre, while the average freight rate cost $21.63 per ton, or N6.51 per litre. The ex-coastal price is N175.73 per litre.
For component charges, the average littering expenses cost N4.81 per litre; Nigerian Ports Authority (NPA) charge N2.49 per litre; NIMASA charge N0.23 per litre.
Jetty Through Put charge is N1.61 per litre; Storage charge is N2.58 per litre, and average finance is N2.17 per litre, translating to an expected landing cost per litre of N189.61.
There is the wholesale margin of N4.03 per litre; administration charge of N1.23 per litre; transporters’ allowance (NTA) of N3.89 per litre; Bridging Fund cost of N7.51 per litre and Marine transport average (MTA) of N0.15 per litre.
The expected ex-depot price for wholesale products marketers now stands at N206.42 per litre. The addition of retailers’ margin of N6.19 per litre would bring the expected retail price (lower band) N209.61 per litre and expected retail price (upper band) N212.61 per litre.
No more N162! PPPRA increases petrol price to N212 per litre
The Petroleum Products Pricing Regulatory Agency (PPPRA) has announced an increase in the retail price of petrol.
In a petrol pricing template published on its website late Tuesday, PPPRA said the recommended retail price is between N209.61 and N212.61 per litre.
According to the document, the landing cost of petrol is N189.61.
The ex-depot price, which is the rate marketers get the product, was fixed at N206.42.
Nigerians have been anticipating an increase in the retail price of petrol after crude oil price rose to as high as $71 per barrel.
However, the Nigerian National Petroleum Corporation (NNPC) ruled out an increase in the ex-depot price of petrol in March saying it had enough stock to last for 40 days.
Kennie Obateru, the NNPC spokesman, had said the decision was taken “in order not to jeopardise ongoing engagements with organised labour and other stakeholders on an acceptable framework that will not expose the ordinary Nigerian to any hardship”.
In February, the NNPC had also allayed fears over the possible increase in the price of petrol, amid concerns on the rising price of crude oil on the global market.
Nigeria currently runs a price modulation system where the retail price of petrol is fixed to mirror occurrences in the global market.
In February, Timipre Sylvia, the minister of state for petroleum resources, advised Nigerians to be ready to bear the pain of higher petrol prices because there was no budget for under-recovery; the term given to the differential between landing cost and fixed retail price.
