The Petroleum Products Marketing Company, one of the downstream subsidiaries of the Nigerian National Petroleum Corporation, NNPC, Friday, hiked the ex-depot price of Premium Motor Spirit, PMS, also known as petrol, by N7.50 per liter to N155.17 per liter from N147.67 per liter previously.
In a memo from the Manager Marketing of the PPMC, Tijani Ali, to the Executive Director, Commercial, EDC, of the PPMC, the NNPC subsidiary said the new price would come into effect from November 13, 2020.
The ex-depot price is the amount at which the PPMC sells the commodity at the depot to retail outlets owners and fuel marketers across the country. This means that at N155.17 per liter, marketers would be dispensing the product to motorists at between N167 and N175 per liter, from Friday, November 13, 2020.
The PPMC also put the Ex-coastal price of the commodity at N130 per liter.
The memo reads: “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 liter; PPMC Ex-Depot Price (With collection) N155.17 per liter. Above is submitted for your consideration and approval.”
The Executive Directive, Commercial, also sought the approval of the Managing Director the PPMC, saying: “Following your directive in the attached memo to advise the market of the change on PPMC portal, we hereby seek your kind consideration and approval for the change of price on the price portal.”
The Managing Director in his response, Thursday, November 12, 2020, gave the EDC the approval for the hike in the price of the commodity to be effected.
However, the hike in the price of petrol by the NNPC and the PPMC is coming against the fact that the price of crude oil in the international market had remained largely unchanged over the last three months.
Specifically, earlier in November, the price of crude oil had dropped to between $35 and $37 per barrel, before rising to $42.97 per liter as of 8 am November 13, 2020. Crude oil prices had hovered around $40 and N42 per barrel over the last three months.