The Federal Government has returned the pump price of Premium Motor Spirit popularly known as petrol to N143.80 per litre.
It explained that the decision to return fuel pump price to the amount became imperative after considering marketers’ realistic operating costs for June based on the existing price regime.
The apex government, through the Petroleum Products Pricing Regulatory Agency (PPPRA) explained that with the current reality, a new price band of N140.80 to N143.80 per litre will apply for petrol pump price for the month of July.
PPPRA, in a letter to marketers on Wednesday, said the increase was in line with the provision for the establishment of a monthly price band within which petroleum marketers are expected to sell PMS at the retail stations based on the existing price regime.
“After a review of the prevailing market fundamentals in the month of June and considering marketers’ realistic operating costs, as much as practicable, we wish to advise a new PMS pump price band of N140.80 – N143.80/litre for the month of July 2020.
“Kindly note that the Ex-depot for collection includes the statutory charges of Bridging Fund, Marine transport Average, National Transport Allowance and the Administrative charge. All marketers are advised to operate within the indicative prices as advised by PPPRA,” the letter read.
It would be recalled that the federal government had in May declared a slash in pump price from N145 to N125, citing recent crash in world oil prices and the resultant economic realities faced by the nation.
“Effective 19th March 2020, NNPC Ex-Coastal price for PMS has been reviewed downwards from N117.6/litre to N99.44/litre while Ex-Depot price is reduced from N133.28/litre to N113.28/litre. These reductions will, therefore, translate to N125/litre retail pump price,” the government had said.