FUEL PRICE INCREASES TO 143.80 PER LITRE

FUEL PRICE INCREASES TO 143.80 PER LITRE

The Federal Government has announced an increase in the new pump price of petrol from 121.5– 123.5 per litre to N140.80- 143.80 per litre.

This was revealed in a letter signed by the Executive Secretary of Petroleum Products Pricing Regulatory Agency (PPPRA), Abdulkadir Saidu, dated Wednesday, July 1, 2020, to oil marketers.

It read in part, “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 per litre for the month of July 2020.’’

The PPPRA urged all marketers to operate within the indicative prices, adding that the former depot price for collection include the statutory charges of bridging fund, maritime transport average, National Transport Allowance and administrative charges.

The rise in petrol for the month of July was primarily due to the rise in global crude oil prices, as PMS had been deregulated.

The federal government had a few months ago announced its plans to stop the subsidy payment regime as they said that the downstream sector of the oil industry will be fully deregulated.

PPPRA had stated that it arrived at the new price regime after taking into consideration the operating costs of the oil marketers.

Recall that at the beginning of the month of June, there was an adjustment in the price of fuel as it was fixed at N121.50 per litre from N123.50 per litre in May. The new price in July represents an over N20 per litre surge when compared to the price last month.