By Francis Ogwo
The Pipelines and Products Marketing Company (PPMC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC), has increased the ex-depot price for Premium Motor Spirit (PMS) by N5.32 per litre.
This was made public in a memo released by the company to all depots and marketers on Tuesday and signed by Mohammed S. Bello, on behalf of the PPMC.
It stated that from Wednesday, August 5, PMS from ex-coastal transfer point would be N113.70, while from ex-depot it will cost N138.62 per litre.
The ex-depot price, as at July, released by the Petroleum Products Pricing Regulating Agency (PPPRA), another agency of government with the responsibility of pricing regulation, was N133.30 per litre.
Recall that Ex-depot price is the price that the product is sold at the depot for marketers. It largely determines the price of the product at filling stations.
While PPPRA is yet to release August price advisory as it does monthly since April, the PPMC sent a memo advising marketers on the coastal price and ex-depot price for the product.
This memo would effect a change in the price of petrol currently selling at N143.80 per litre at retail stations and an increase in ex-depot price will definitely affect the new price.
A new monthly price review of petroleum products was recently approved by President Muhammadu Buhari in line with international market prices since April following the impact of COVID-19 pandemic even as the PPPRA recently announced total deregulation of petrol pump price after the fuel subsidy was removed.
Meanwhile, the announcement has caused frenzy and panic buying by motorists anticipating imminent scarcity.
