Petrol Stations in Lagos have adjusted their pump price to N168 as the Petroleum Products Marketing Company (PPMC) increased the depot price of premium motor spirit, also known as petrol from N147.67 to N155.17.
The PPMC is a subsidiary of the Nigerian National Petroleum Corporation ( NNPC) and currently imports almost all of Nigeria’s petrol.
In a November 11 internal memo signed by Ali Tijjani, the PPMC proposed that the November depot price of petrol be increased to N155.17 from N147.67 per litre.
According to the memo, the new price takes effect on Friday, November 13, 2020. Subsequently, many petrol stations in Lagos have effected the change.
The ex-depot price is the price at which depot owners sell the commodity to retail outlets.
A price schedule showed that the landing cost of petrol is now N123.89 per litre while the ex-coastal price, which is the price at which the product is sold to depot owners, is now N130.
With a retailer margin of N6.19, PPMC estimates that the minimum pump price would be N161.36 per litre.
When marketers add the cost of transporting the commodity from the depots to their retail outlets, in addition to other costs, they arrive at marketers’ margin, among others to determine the final pump price, which may be between N168 and N170.
In September, PPMC adjusted the ex-depot price of petrol to N151.56 per litre from N138.62; this translated to an average retail pump price of N161.
The federal executive council had in March approved a monthly review of petroleum products prices in line with the international market prices following the impact of COVID-19 pandemic.
It said this was done to deregulate the downstream sector as the NNPC would no longer absorb the difference between the landing cost and the pegged retail price.