The federal government on Monday reduced the price of petrol, setting the new price band for the product at between N121.50 and N123.50 per litre.
In a circular to petroleum marketers, the government, through the Petroleum Products Pricing Regulatory Agency (PPPRA), said that the new template would be operational for the month of June.
By the new release, according to the PPPRA, no marketer is allowed to sell above the higher price range of N123.50 for fuel.
In the letter, with reference number: A.4/9/017/C.2/V/701, tagged, ‘Guiding Price for Premium Motor Spirit (PMS) in the Month of June 2020,’ the agency advised oil marketers to abide by the prices.
It also fixed the ex-depot price of the commodity, which is the price the product is sold to depot owners, at between N102.13 and N104.13 per litre, and the ex-depot for collection price, which is the price the product is sold to retail outlet owners, at between N109.78 and N111.78 per litre.
“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.
“All marketers are advised to operate within the indicative prices as advised by the PPPRA” the agency said.
In May, the Petroleum Products Marketing Company (PPMC) ,a subsidiary of the Nigerian National Petroleum Corporation (NNPC) reduced the ex-depot price of petrol, to N108 per litre.
It also slashed the ex-depot price of Automotive Gasoline Oil, also known as diesel, to N164 per litre for depots in Lagos and N166 per litre for depots in Oghara, Calabar, Port Harcourt, among others.
The Minister of State, Petroleum, Mr Timipre Sylva, had told journalists that from May, the government would relate the new monthly template directly with oil marketers, rather than releasing it to the public.