THE Federal Government has said from January 1, 2016, all retail stations of the Nigeria National Petroleum Corporation (NNPC) would start selling petrol at N86 per litre.
Mr Farouk Ahmed, the Executive Secretary, Petroleum Product Pricing Regulatory Agency (PPPRA), announced this at a news conference in Abuja, on Tuesday.
He also said other oil marketers would sell at N86.50 per litre.
Ahmed stated that the reduction in the price of the commodity was due to an implementation of the revised components of the Petroleum Products Pricing Template for Premium Motor Spirit (PMS) and Kerosene.
According him, the revised template, which would be reviewed on quarterly basis, is geared towards ensuring an efficient and market-driven price that will reflect current realities.
“The template is not static, as there would be a quarterly review and if there is any major shift, the Minister of State for Petroleum Resources would be expected to call for a review, either upward or downward.
“If there is no major shift, the price would continue from January to March 2016,” he said.
Giving a breakdown of the revised template, Ahmed disclosed that trader’s margin, the amount paid to traders for bringing the commodity into Nigeria, had been eliminated, from N1.47 per litre previously.
He said “lightering” expenses was reduced from N4.07 per litre to N2 per litre; NPA reduced from N0.77 to N0.36 per litre; while Jetty throughput and storage charges were reduced.
Ahmed said the ex-depot price of PMS stood at N77 per litre, compared to N77.66 per litre, while the pump price for oil marketers would be N86.50 per litre.
Ahmed, however, said any marketer found selling above the PPPRA approved price would be appropriately sanctioned by the agency.(Tribune)
