Marketers promise to comply with new petrol price

Petroleum marketers Monday promised to comply with the Federal Government’s moves on to put pump price of petrol at between N121.50 and N123.50.

The Petroleum Products Pricing Regulatory Agency (PPPRA) Monday announced a reduction in pump price band from N125.50/N123.50 per litre to N121.50/N123.50.

READ: FG reduces petrol price to N121.50

But the agency will review the price monthly, said its spokesman Apollo Kimchi.

Though petrol marketers said the government only gave the price band of between of within which they should sell a litre of PMS, they would nevertheless comply with the new price band.

Speaking with Daily Trust, the CEO/Executive Director of Major Oil Marketers Association of Nigeria (MOMAN), Clement Isong, said major marketers had already been told by the government that prevailing market fundamentals would be used to determine PMS price.

Isong said the new price didn’t come as a surprise.

In its circular, the agency said it came up with the new price band after reviewing prevailing market fundamentals for May.

“Please recall the recently approved pricing regime which became effective 19the March 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,” said the circular.

“After a review of the 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/litre, Ex-depot Price: N102.13—N104.13/litre, Ex-depot for collection: N109.78—N111.78/litre.

“All marketers are advised to operate within the indicative prices as advised by the PPPRA.”

Daily Trust reports that the pump price of petrol was reduced to N125 per litre from N145 on March 18, 2020.

The PPPRA also announced on March 31 a price band of N123.50 to N125 per litre.