The federal government has further reduced the pump price of Premium Motor Spirit (PMS), otherwise known as petrol, to N121.50 per litre for this month of June, from N123.50 per litre it announced for last month.
In a circular to oil marketers, the Petroleum Products Pricing Regulatory Agency (PPPRA) said that the new price band for PMS is now N121.50 per litre and N123.50 per litre.
By this new template, which becomes operational in this June, no marketer is allowed to sell petrol above the higher price range of N123.50.
The regulatory agency in the circular, also fixed the ex-depot price of petrol at between N102.13 and N104.13 per litre. Ex-depot price is the price the product is sold to depot owners. It also slashed the ex-depot for collection price, which is the price the product is sold to retail outlet owners at between N109.78 and N111.78 per litre.
The circular read: “Please recall the recently approved pricing regime which became effective 19th March 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 the 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.”