Nigeria, Africa’s biggest crude oil exporter, has hiked the ex-depot price for Premium Motor Spirit (PMS) also known as petrol by N5.32 per litre.
The country’s Pipelines and Products Marketing Company (PPMC), which is a subsidiary of the Nigerian National Petroleum Corporation (NNPC), approved the new ex-depot price for petroleum products for the month of August in a memo released to all depots and marketers sighted by Platforms Africa on Wednesday morning.
Ex-depot price is the price that the product is sold at the depot for marketers. It largely determines the price of the product at filling stations.
The memo dated August 4 and signed by Mohammed S. Bello on behalf of the PPMC indicated that from Wednesday, August 5, Premium Motor Spirit, PMS popularly known as petrol from ex-coastal transfer point would be N113.70, while from ex-depot it will cost N138.62 per litre.
The ex-depot price as at July price band released by the Petroleum Products Pricing Regulating Agency (PPPRA), another agency of government preoccupied with pricing regulation, was N133.30 per litre.
Checks by Platforms Africa shows that depot owners sell the product between N133.30 per litre and N133.50 per litre.
While PPPRA is yet to release August price advisory as it does Monthly since April, the PPMC sent a memo advising marketers on oy the coastal price and ex-depot price for the product.
It will be recalled that petrol is currently selling at N143.80 per litre at retail stations and an increase in ex-depot price will definitely affect the new price.
President Buhari had approved a monthly review of prices of petroleum products in line with international market prices since April following the impact of Covid-19 pandemic.
The PPPRA had recently announced total deregulation of petrol pump price with the removal of fuel subsidy.