Agency announces new pump price for Petrol

Mr Farouk Ahmed, the Executive Secretary of PPPRA announced that the pump price has bee set at 86.50 Naira per litre, this price is said by the agency to be in line with the prevailing market trend.

“This new price regime is with effect from January 1, 2016,” and has been approved by the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu.

Read: US to buy crude oil from Nigeria - Minister

Traders Margin, Lightering Expenses, Nigeria Port Authority, Jetty Throughput, Storage Charges and Bridging Fund, Retailers, Transporters and Dealers Margins are major component that affected the pricing template.

According to the breakdown, the new pump price will be 86.50 Naira, 50 Kobo less that the old price of 87 Naira and the Ex-depot price for premium motor spirit (PMS) will be 77 Naira per litre.

Oil marketers have been advised by the PPPRA to strictly adhere to the approved Ex-depot and pump prices.

Since the drop in price of crude oil, the government has reduced the price for petrol twice, although the country has been experiencing fuel scarcity.

The government has assured the people that the scarcity will come to an end as some of the nation’s refineries have started production and as the Minister of States for Petroleum as said that there will be a whole repair of the refineries in the New Year..