The federal government has slashed the pump price of petrol to N121.50/liter.

It is the third such price slash of Premium Motor Spirit (PMS) in recent times.

TheCable reports that the latest price reduction was conveyed in a May 31 circular from the Petroleum Products Pricing Regulatory Agency (PPPRA) to petrol marketers.

The federal government recently reduced the pump price of petrol from N145 to N125, and then to N123.

The PPPRA and the Nigerian National Petroleum Corporation (NNPC) have informed the nation that the pump price of petrol will henceforth be determined by market forces of demand and supply.

COVID-19 era restrictions, lockdowns and a disagreement among OPEC (Organisation of Petroleum Exporting Countries) members has led to a crash of Brent Crude and West Texas Intermediate (WTI) in the international market.

PPPRA would increase the price of petrol at the pumps should the price of crude in the international market rise.

The circular reads as follows:

“Please recall the recently approved pricing regime which became effective March 19, 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 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 per litre.

“Ex-Depot price N102.13 – N104.13 per litre. Ex-Depot for collection N109.78 – N111.78 per litre. All marketers are advised to operate within the indicative prices as advised by the PPPRA.”