As the federal government on Monday announced a new pump price band for Premium Motor Spirit (petrol) from N125.50/N123.50 per litre to N121.50/N123.50, petroleum products marketers in the country have promised to comply with the latest downstream pricing regime.
Speaking with Daily Trust, the Executive Director of Major Oil Marketers Association of Nigeria (MOMAN), Mr. Clement Isong, said major marketers had already been told by the government that prevailing market fundamentals would be used to determine PMS price. Isong said marketers weren’t surprised with the new pump price, promising that they would comply with it.
This is even as the National Union of Road Transport Workers (NURTW) described the revised PMS pricing band as a welcomed development. The President of the Union, Prof. Jibrin Ibikunle Baruwa, said the union was happy about it and would help in cushioning the effect of the COVID-19 pandemic lockdown to its members. Baruwa, whose views were expressed by the Assistant General Secretary, Comrade Tony Asogwe, said, “We appreciate the government for the reduction. We wish they could further reduce it. “We want to appeal to the government for the easing of the inter-state movement.
The fact remains that about 95% movements of people, and goods across the nation is by the road, therefore, people are in problem financially”, the union leader added. The revised pricing band was contained in a circular issued by the Petroleum Products Pricing and Regulatory Agency (PPPRA) dated May 31, 2020 and sent to fuel marketers. In the circular titled ‘Guiding Price for Premium Motor Sprit (PMS) in the Month of June 2020′ the agency stated that the latest pump price review was decided upon after a review of the prevailing market fundamentals in the month of May. It clarified: “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, as follows: Price Band: N121.50 —N123.50/litre, Ex-depot Price: N102.13—N104.13/litre, Ex-depot for collection: N109.78—N111.78/litre. “All marketers are advised to operate within the indicative prices as advised by the PPPRA” It would be recalled that pump price of petrol was reduced to N125 per litre from N145 on March 18, 2020 and subsequently revised to N123.50 per litre barely a week later.
