#FuelPriceHike: PPPRA makes U-turn
The Nigerian National Petroleum Corporation (NNPC) has insisted there is no increase in the ex- deport price of Premium Motor Spirit (PMS) also known as petrol in March.
The oil corporation debunked the report of the increase in the retail price of petrol to N212.61 per litre making rounds on all social media platforms in a tweet on its official account @NNPC group.
The tweet reads; JUST IN
“#NNPC Insists No Increase in Ex-deport Price of PMS in March”
Following the outrage that greeted the increase in the price of PMS, the Petroleum Products Pricing Regulatory Agency (PPPRA), on Friday, deleted an earlier published template.
Recall that PPPRA released a report on Thursday night that showed that 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.
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.
The average littering expenses were put at N4.81 per litre; Nigerian Ports Authority (NPA) charge N2.49 per litre; NIMASA charge N0.23 per litre; Jetty Thru put of N1.61 per litre and Storage charge of N2.58 per litre and average finance cost of N2.17 per litre, translating to an expected landing cost per litre of N189.61.
The wholesale margin was fixed at N4.03 per litre; administration charge, 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 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.
This means that the retail price of petrol would be N212.61. In a template published on its website, the agency explained that the increment was due to the market determinants and importation costs.
Also, recall that the NNPC assured Nigerians there will be no #FuelPriceHike in a statement signed by the NNPC spokesman Kennie Obateru.