The Nigerian National Petroleum Corporation (NNPC) on Wednesday night announced a cut in the ex-depot price of petrol from N113.28 per litre to N108.
In a memo to oil marketers and other stakeholders in the petroleum marketing business, dated May 5, 2020, with the subject: ‘Re: PPMC Petroleum Products Prices for May 2020,’ the PPMC also slashed the ex-depot price of Automotive Gasoline Oil, also known as diesel, to N164 per litre for depots in Lagos and N166 per litre for depots in Oghara, Calabar, Port Harcourt, among others.
The Group General Manager, Group Public Affairs Division of the Nigerian National Petroleum Corporation (NNPC), Dr. Kennie Obateru quoted the Managing Director of the Petroleum Products Marketing Company (PPMC), Musa Lawan, as saying that the new ex-depot price of Premium Motor Spirit was a reflection of the company’s market strategy.
He stated that the strategy was to make more sales while complying with the price template of the Petroleum Products Pricing Regulatory Agency.
“The N108 new PPMC ex-depot price of PMS from N113.28 is a marketing strategy to make more sales while complying with PPPRA price template. We reviewed the ex-depot prices to enable us make more sales.
“For AGO, it’s a deregulated product and as such its prices are determined by market forces,” he said.
The statement said the new price was arrived at after an extensive review of market realities by the PPMC internal price review unit.
However, it pointed out that Automotive Gas Oil (AGO), otherwise called diesel, having been already deregulated, its prices were now determined by market forces.
The NNPC did not mention whether the new reduction of the ex-depot would translate to a cut in the pump price of PMS.
NNPC has reviewed its PMS ex-coastal, ex-depot and NNPC Retail pump prices on 18th March.
The ex-coastal price for PMS was reviewed downwards from N117.6 per litre to N99.44 effective from 19th March.
Its ex-depot price was similarly reduced from N133.28 per litre to N113.28.