A fresh hike in the pump price of Premium Motor Spirit (PMS), popularly known as petrol looms following the adjustment of the ex-depot price of the product.
This adjustment was contained in a leaked internal memo from the Petroleum Products Marketing Company (PPMC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC).
The document marked PPMC/C/MK/003 and dated November 11, 2020, was signed by the Manager Marketing of the PPMC, one Mr Tijani Ali, and addressed to the Executive Director of Commercial (EDC) of the agency.
It contains an advice which seeks an upward review of the ex-depot price of PMS, which is the price of the product sold at the tank farms, to N155.17 per litre from the initial N147.67 per litre.
Consequently, marketers would be dispensing the product to motorists within a band of N165 and N173 per litre.
The memo read in part, “The EDC may please refer to the management directives in respect of the above subject (PPMC PMS prices for November 2020) as per the attached memo.
“In line with the above, we propose PPMC November 2020 actual prices for PMS with effect from 13th November 2020, as follows: PPMC Ex-Coastal Price for PMS N130 per litre; PPMC Ex-Depot Price (With collection) N155.17 per litre.”
In September, the Federal Government declared a fully deregulated downstream oil sector, paving the way for prices to be determined by market forces, especially international oil price.
The deregulation had been singled out as the reason behind the recent hike in the price of petrol.
According to the Minister of State for Petroleum Resources, Timipre Sylva, deregulation will be difficult for Nigerians at the initial stage but will get better in the long run.
He added that since the announcement of full deregulation in March, the Federal Government has saved over N1 trillion.