Fuel price to rise by N7.50/litre as PPMC hikes ex-depot price

Fuel subsidy…Sells to marketers at N155.17

…Petrol stations to sell at between N167 and N175/litre

…It’s unacceptable — PDP, as IPMAN kicks too

By Michael Eboh & James Ogunnaike, By Dirisu Yakubu

The Petroleum Products Marketing Company, one of the downstream subsidiaries of the Nigerian National Petroleum Corporation, NNPC, yesterday, hiked the ex-depot price of Premium Motor Spirit, PMS, also known as petrol, by N7.50 per litre to N155.17 per litre from N147.67 per litre previously.

In a memo from the Manager Marketing of the PPMC, Tijani Ali, to the Executive Director, Commercial, EDC, of the PPMC, the NNPC subsidiary said the new price would come into effect from November 13, 2020.

The ex-depot price is the amount at which the PPMC sells the commodity at the depot to retail outlets owners and fuel marketers across the country. This means that at N155.17 per litre, marketers would be dispensing the product to motorists at between N167 and N175 per litre, from Friday, November 13, 2020.

The PPMC also put the Ex-coastal price of the commodity at N130 per litre.

The memo reads: “The EDC may please refer to the management directives in respect of the above subject (PPMC PMS prices for November 2020) as per the attached memo.

“In line with the above, we propose PPMC November 2020 actual prices for PMS with effect from 13th  November 2020, as follows: PPMC Ex-Coastal Price for PMS N130 per litre; PPMC Ex-Depot Price (With collection) N155.17    per litre. Above is submitted for your consideration and approval.”

The Executive Directive, Commercial, also sought the approval of the Managing Director the PPMC, saying: “Following your directive in the attached memo to advice the market of the change on PPMC portal, we hereby seek your kind consideration and approval for the change of price on the price portal.”

READ ALSO: FG removes fuel price cap, gives marketers freedom to fix price

The Managing Director in his response, Thursday, November 12, 2020, gave the EDC the approval for the hike in the price of the commodity to be effected.

However, the hike in the price of the petrol by the NNPC and the PPMC is coming against the fact that the price of crude oil in the international market had remained largely unchanged over the last three months.

Specifically, earlier in November, the price of crude oil had dropped to between $35 and $37 per barrel, before rising to $42.97 per litre as at 8am, November 13, 2020. Crude oil prices had hovered around $40 and N42 per barrel over the last three months.

IPMAN   kicks against increase, appeals to FG to stay action

Meanwhile, the Independent Petroleum Marketers Association of Nigeria (IPMAN) has described the planned increase of ex-depot price of premium motor spirit   from 147.67 to 155.75 without any consideration for the current economic and political situation of the country as   uncalled for.

IPMAN therefore, appealed to the federal government to stay action on the implementation of the new ex-depot price announced by the management of the Nigeria National Petroleum Corporation (NNPC).

The South West Zonal Chairman of IPMAN, Alhaji Dele Tajudeen, in a statement issued in Abeokuta, the Ogun State capital, said the plea became necessary so as not to incur wrath of Nigerians who are going through economic hardship.

According to him, “the increase is exclusive of marketers margin, transportation, loading expenses, saying, that government is insensitive to the plight of the marketers and the masses.

“We are therefore pleading with federal government to shelve the planned increase until further notice to give room for consideration and adjustment.

“Without any consideration to the stakeholders plights, the federal government announced the new price regime which NNPC management said would be effective from today, Friday, 13th 2020” Tajudeen   stressed with concern”. He declared that “IPMAN will hold emergency meeting with other stakeholders to trash out this unbecoming and the arbitrary increase in the ex-depot prices”.

PMS: N170 pump price wicked, unacceptable — PDP 

The Peoples Democratic Party, PDP, Friday, described the recent increment of the pump price of the Premium Motor Spirit, PMS, to N170 per litre as wicked and unacceptable, given the prevailing economic situation in the country.

This is as the party insisted that the increase would worsen the already suffocating economic situation in the country.

In a statement signed by spokesman, Kola Ologbondiyan, the PDP held that the ruling All Progressives Congress, APC, “have no justification to increase the cost of fuel to anything above N100 per litre not to talk of “N170, when there are practical options to maintain affordable price given our production capacity and potentialities.”

The statement continued: “It is evident that the continuous increase in the pump price of fuel under opaque and nebulous indices is a product of incompetence and large scale corruption being perpetrated by a few individuals in the Buhari administration, who are bent on fleecing Nigerians and holding our nation to ransom.

“Our party notes that the APC administration has failed to come clean on the parameters being used for the hike in prices vis-a-vis our production, export and accruing revenue.

“Indeed, the APC administration is not being honest with Nigerians regarding the status and volume of oil production, sales and accruing revenue.

“This is in addition to its failure to fix our refineries and end crude oil theft, allegedly to aid APC interests.

“This appears to provide answers to why the APC administration has failed to offer any explanation on huge fraud going on in the management of our nation’s oil resources including the alleged stealing over N9.6 trillion ($25 billion) by APC interests, as detailed in the leaked NNPC memo.

“It has also failed to publish details of its sleazy oil subsidy regime, including the involvement of APC interests in the claimed under-recovery for unnamed West African countries, running into trillions of naira, while Nigerians are made to bear the burden of high fuel costs.

“Such humongous fraud in the management of our oil resources is responsible for the high costs and unspeakable hardship being suffered by millions of Nigerians who can barely afford their meals and basic necessities of life.

“Our party urges President Buhari to end the corruption and the stealing of our oil resource under his watch by APC leaders, recover the looted resources and immediately reverse this increase in price of fuel.

“President Buhari should also take steps to fulfill his promise to revamp our refineries or accept his failures and apologize to Nigerians.

“It is still not yet late for him to get more competent hands to run our oil sector instead of imposing more hardship on Nigerians.”

Vanguard News Nigeria

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