The Nigerian government through the Nigerian National Petroleum Corporation (NNPC) has debunked the earlier released hike in PMS to N212 per litre.
On Thursday evening, The Petroleum Products Pricing Regulatory Agency (PPPRA) posted a template that recommended the price of Premium Motor Spirit, PMS, also known as petrol to be retailed between N209.61 and N212.61 per litre.
The landing cost of petrol was placed at N189.61 while the ex-depot price was fixed at N206.42. The template which was posted via the agency’s official website was taken down early this morning following outrage from the general public.
Shortly after, at about 10 am, Friday morning, NNPC posted a tweet debunking the hike in price.
The PPPRA Point Of View
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.
The PPPRA added that fuel subsidy actually officially returned in February 2021, as according to the downstream oil sector regulator, 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.
Group Public Affairs Division of the Corporation, Dr Kennie Obateru, while discouraging Nigerians from panic buying said the corporation had no plans to increase its ex-depot price. Ex-deport price is the price at which oil marketers buy products at the depots which determines the price at which petrol stations would retail.
Aside from the online outrage, queues are beginning to build up in fuel stations around the countries major cities amidst fear of PMS scarcity.
Despite NNPC’s assurance of stable price, TwentyTen Daily found that not only are Nigerians panic buying, some filling stations have closed down their outlets in what many feel is a tactic to stockpile their product and sell at very high rates if PMS becomes scarce.
A fuel attendant at a Mobile filling station in Egbeda, Lagos who chose to speak to us on anonymity said they had known for a while and the management asked that sales be put on hold in case fuel becomes scarce.
This particular fuel station has been closed since Monday, March 8, 2021.
Other fuel stations around have followed suit including an NNPC filling station in the same area.