Petroleum Products Pricing Regulatory Agency (PPPRA) has announced the reduction of retail pump price of petrol from N125 to the band of N121.50 to N123.50 per litre.
The PPPRA, which is an agency under the Federal Government, disclosed this in a circular to fuel marketers dated May 31, 2020.
The drop in crude oil prices is as a result of the negative impact of the coronavirus pandemic on the economy, as the landing cost of petrol hit a record low in March, wiping off subsidy on the product.
This led to the reduction in the pump price of Premium Motor Spirit (PMS) from N145 per liter to N125 on March 19th.
Read Also: Update: FG Reduces Petrol Price From N145 To N125 As Official Price
A part of the memo reads;
Please recall the recently approved pricing regime which became effective March 19, 2020, and the provision for the establishment of a monthly price band within which petroleum marketers are expected to sell PMS at the retail stations.
After a review of prevailing market fundamentals in the month of May and considering marketers realistic operating costs as much as practicable, we wish to advise of a new PMS guiding pump price with corresponding ex-depot price for the month of June 2020, as follows; price band N121.50 – N123.50 per litre.
Ex-Depot Price N102.13 – N104.13 per litre. Ex-Depot for collection N109.78 – N111.78 per litre. All marketers are advised to operate within the indicative prices as advised by the PPPRA.
According to the memo, marketers are expected to sell petrol between a price band of N121.50 and N123.50, effective from June.
