The federal government has announced a 50k reduction in the price of Premium Motor Spirit known as petrol.
In a statement released by the Petroleum Products Pricing Regulatory Agency(PPPRA) executive secretary, Farouk Ahmed, the commodity which officially sold for N87/litre will now sell for N86.50k/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 PMS and Household Kerosene.
“The Petroleum Products Pricing Regulatory Agency (PPPRA) hereby announces the implementation of the revised components of the Petroleum Products Pricing template for Premium Motor Spirit (PMS) and Household Kerosene (HHK),” read the statement.
“This followed the approval of the minister of state for petroleum resources, dr. Ibe Kachikwu, for the implementation of the revised template.
“The major components of the pricing template affected by this review are Traders Margin, Lightering Expenses, Nigerian Ports Authority, Jetty Throughput and Storage Charges, as well Bridging Fund.
“Other components revised include Retailers’ Transporters and Dealers Margin.
Accordingly, the Ex-depot price of PMS shall be N77.00kobo/litre, while the pump price shall be N86.50kobo/litre in line with the prevailing market trend.
“This new price regime is with effect from January 1, 2016. All marketers are hereby advised to adhere strictly to the PPPRA-approved Ex-depot and pump prices, as the