Lagos — The Petroleum Products Pricing Regulatory Agency, PPPRA, Thursday, announced an increase in the pump price of Premium Motor Spirit (PMS) to N212.61 per litre for the month of March 2021.
The new price is a 25.06 per cent increase from an average of N170 per litre currently sold at petrol stations across the country.
PPPRA, in its PMS guiding price for March 2021, disclosed that the new price was supposed to run from March 1st and run till March 31st, 2021.
However, it is not known if the new price would be effected at the pump, as the price continued to be sold at about an average of N170 per litre. The fact that the price of the commodity remained unchanged means that the Federal Government, through the Nigerian National Petroleum Corporation, NNPC is paying an average of N42 per litre as subsidy for Nigerians.
According to the PPPRA, based on the average cost for the period, February 1st to 28th 2021, and an average FMDQ Importer and Exporter (I&E) Naira/US Dollar Exchange Rate of N403.80, the expected retail price of PMS for March 2021, stands at N209.61 per litre and N212.61 per litre, being the lower and upper band respectively.
Giving a breakdown of the cost elements of the commodity, the PPPRA put the Expected Ex-Coastal price at N175.73 per litre, comprising Average gasoline price (FOB Rotterdam barge), and Average freight rate of N169.22 and N6.51 per litre respectively.
It also put the Expected Landing Cost of the commodity at N189.61 per litre, comprising the addition to the ex-coastal price, of average lightering expenses, Nigeria Port Authority Charges, NIMASA charges, jetty throughput charges, storage charge and average financing cost of N4.81, N2.49, N0.23, N1.61, N2.58 and N2.17 per litre, respectively.
Furthermore, the addition of the wholesalers margin of N4.03 per litre; administrative charge of N1.23 per litre; transporters’ allowance of N3.89 per litre; bridging fund of N7.51 per litre and Marine Transport Average of N0.15, brings the expected ex-depot price, that is the price at which the commodity is sold to petrol stations, to N206.42 per litre.
The PPPRA further stated that the inclusion of retailers’ margin of about N6.19 per litre, would bring the pump price of the commodity, the price at which it is sold to motorists, to N212.61 per litre.
Subsidy actually officially returned in February 2021, as according to the PPPRA, the actual pump price of PMS for February was between N183.74 and N186.74 per litre, meaning that the Federal Government paid an average of N16 per litre for PMS in the month.
However, in January 2021, the PPPRA disclosed that the price of the commodity was between N163.36 per litre and N166.36 per litre.