Fuel marketers have expressed concerns over the further reduction by the Federal Government of the pump price of Premium Motor Spirit, also known as petrol. The Petroleum Products Pricing Regulatory Agency, in a circular to marketers dated May 31, 2020, announced a new pump price band of N121.50 to N123.50 per litre for petrol.

In the circular, which was obtained by our correspondents on Monday, the agency noted the recent approval of the pricing regime that became effective on March 19 and the provision for the establishment of a monthly price band within which retailers should sell the product.

The PPPRA said, “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 the 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.”

The sharp drop in crude oil prices on the back of the spread of coronavirus saw the landing cost of petrol hit a record low in March, wiping off subsidy on the product. The pump price of petrol was reduced to N125 per litre from N145 per litre on March 18, 2020, effective March 19. The PPPRA further announced on March 31 a price band of N123.50 to N125 per litre, effective April 1.

The Chief Executive Officer/Executive Secretary, Major Oil Marketers Association of Nigeria, Mr Clement Isong, said the price modulation by the government was hurting marketers’ businesses. He urged the PPPRA to carry the operators along in determining the monthly price band for the product.

Isong said many marketers had recorded losses following the recent reductions in the pump price of petrol as they still had old stocks when the price was adjusted.

“As a law-abiding organisation, our members will comply with the new petrol price band,” Isong added. According to him, full deregulation is the ultimate solution to the challenges in the downstream petroleum sector of the nation’s oil and gas industry.

The National Operations Controller, Independent Petroleum Marketers Association of Nigeria, Mr Mike Osatuyi, said members of the association would abide by the new price band but only after selling their old stocks.

“We are going to sell our old stocks before complying with the new price. By weekend, everybody is supposed to comply,” he told our correspondent.

SOURCE: https://punchng.com/marketers-groan-as-fg-cuts-petrol-price-to-n121-50/