Nigeria hikes pump prices of petrol to N151.56 per litre
The Pipeline Products Marketing Company (PPMC) on Wednesday announced a new pump price for petrol, which will now sell at N151.56 per litre, a day after the government approved fresh hike in tariff for electricity consumption.
In a brief internal memo with ref: “PPMC /IB/LS/020, dated September 2, 2020, PPMC, a subsidiary of the Nigerian National Petroleum Corporation (NNPC) said “a new product price adjustment has been effected on our payment platform.
“To this end the price of premium motor spirit (PMS) is now one hundred and fifty-one naira, fifty-six kobo (N151.61) per litre.”
The Head Depot Manager, D.O. Agbalaya, who signed the memo said; “This is effective from September 2, 2020.”
The ex-depot price is the price at which the product is sold to marketers at the depots.
The pump prices of petrol sold for between N145.80 to N150 per litre in the month of August and until Monday September 1 across the country.
Last month, the Petroleum Products Pricing and Regulatory Agency (PPPRA) had approved an ex-depot price of N138.62 per litre for the Premium Motor Spirit (PMS) petrol but decline to fix pump price for the product, leaving marketers to determine their own price.
The price hike in the pump price of petrol was based on the increase in the prices of crude oil in the month of August as all finished products are imported into the country.
The Brent Crude sold that for $43.24 per barrel in July rose to $44.03 per barrel in August.
Nigeria, in a bid to abolish subsidy on petrol products in line with the conditions given by the World Bank before it could grant the country $1.5 billion budget support facilities.
The pump price of fuel was initially slashed by the government when the global prices of crude oil dropped in April and as the market recovered, the price regulatory body started increasing the price gradually on almost a monthly base.
Labour union and manufacturing association have on Tuesday kicked against government approval of new tariff hike for electricity consumption, which they considered as government insensitivity to the plight of Nigerians at this time of economic downturn.