The Petroleum Products Marketing Company (PPMC) has increased the ex-depot price of Premium Motor Spirit, also known as petrol, to N151.56 per litre from N138.62 per litre.
The PPMC is a subsidiary of the Nigerian National Petroleum Corporation, NNPC, and currently imports almost all of Nigeria’s petrol.
According to an internal memo made available to marketers and other stakeholders, the new directive becomes effective September 2.
“Please be informed that a new product price adjustment has been effected on our payment platform,” the memo said.
“To this end, the price of Premium Motor Spirit is now one hundred and fifty one naira, fifty-six kobo (N151.56) per litre.”
The ex-depot price is the price at which the product is sold to marketers at the depots.
The memo was signed by D.O Abalaka, the depot manager.
Lamenting the increase, a depot owner told PREMIUM TIMES that his depot would not sell for less than N155.60 to marketers and other filling stations.
“To buy each litre, you pay draft of N2 on each litre, you pay union dues, and of course you have to make a profit,” the depot owner said on Wednesday, asking not to be named as he had no permission of his union to speak to journalists.
Most depot owners and major marketers buy the petrol directly from the PPMC, store in their own depot and then sell to other marketers and filling station owners from whom Nigerians buy.
Nigerians should thus be expecting a petrol price of about N160 per litre at filling stations, PREMIUM TIMES learnt.
The Nigerian government, through the Petroleum Product Pricing Regulatory Authority (PPPRA) recently announced a ‘deregulation’ policy wherein the NNPC would no longer subsize petrol for Nigerians but the PPPRA would still determine the sale price based on market forces.