The Federal Government has again, announced an increase in the ex-depot price of petrol, raising it to N151.56 per litre, from N148.50 it was in the month of August.
As a result the pump price of petrol has risen to N162 per litre at filling stations as marketers will sell at N10 margin.
Announcing the increase, a memo released by the Pipeline and Product Marketing Company (PPMC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC) , states that the new price takes effect from today, Wednesday, September 2, 2020.
“Please be informed that 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 (N151.56k) per litre. This takes effect from September 2, 2020,” the memo reads in part.
The latest increment follows the adoption of a price modulation regime by the Federal government having announced an end to petrol subsidy in March this year.
The government had stated that petrol pump price would going forward be determined by market forces and the international price of crude oil.
Consequently, petrol pump price drops in Nigeria when crude prices are low at the international market and rises when oil prices gain.
This development owes to the fact that Nigeria, despite been Africa’s largest oil producer, exports it’s crude and import refined products. The nations refineries have become redundant for years now despite series of announced turn around maintenances.