FG Increased Ex-depot Price of Petrol by N6 to N138.62/litre

Following the report published on Monday that oil marketers were in panic buying mood ahead of a possible increase in the pump price of petrol, the Petroleum Products Pricing Regulatory Agency (PPPRA) has finally raised the ex-depot price of petrol by N6 to N138.62 per litre for the month of August 2020.

According to oil marketers, with ex-depot at N138.62 per litre, the pump price of petrol could be between N149 and N150 per litre this month.

The ex-depot price is the price at which depot owners sell the commodity to retail outlets.

Abubakar Maigandi, the Vice President, Independent Petroleum Marketers Association of Nigeria, who spoke to our correspondent, said the PPPRA did not stipulate the new pump price for petrol.

“They told us today (Tuesday) that the ex-depot price is now N138.62/litre but were silent on the pump price, and I think that by tomorrow (Wednesday) the pump price will be announced,” he said.

Maigandi added, “With the N6/litre increase in ex-depot price, the projection is that the pump price will be around N149/litre or N150/litre, based on our usual computations.”

On Monday, Investors King had reported that oil marketers were buying petrol ahead of price increase following a series of meeting with PPPRA.

“There is panic buying and it is because of the worry that prices will be reviewed either downwards or upwards. But because of the marginal rise in crude oil prices, the calculation is that petrol price could go up,” stated Billy Gillis-Harry, the National President, Petroleum Products Retail Outlets Owners Association of Nigeria.

He added, “That is the situation and this was why we requested that there should be a stakeholders’ engagement every month or quarterly so that we can be sure of what to expect.”

This was after price was deregulated and allowed to be determined by forces of demand and supply. Therefore, the recent increase in the price of crude oil necessitated an equal increase in pump price and vice versa.