The federal government of Nigeria has directed depot operators to sell premium motor spirit (PMS) also known as petrol at the official price of N172 per litre to independent markets.
This follows the supply of over 150 million litres of petrol to the Ijegun tank farm in Lagos State, which accounts for up to 35 per cent of national consumption volume, making it critical in ending the distribution crisis.
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Officials of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) gave this directive while speaking on ๐น๐๐๐๐ ๐ฝ๐๐๐๐๐๐๐๐’ known Media while on a site inspection to the Ijegun Tank farm on Friday.
NMDPRA also assured that independent fuel marketers under the aegis of Independent Petrol Marketers Association of Nigeria (IPMAN) will now get petrol at the ex-depot price of N172 per litre like their major marketersโ counterparts.
This will enable them sell petrol at N184 per litre in the West and South or N194 in the Northern parts of the country as approved by the regulator.
Ripples Nigeria had reported, the Group Chief Executive Officer of the Nigerian National Petroleum Company (NNPC), Mele Kyari, stated that government has earmarked N3.36 trillion to spend on subsidy for January to June.
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He further noted that there was no need for marketers to sell above the pump price as the government had been paying at least N185 for every litre of petrol.
Kyariโs words: โWe transfer products to oil marketing companies at N113 per litre so that we can establish a market price of N170.
This was a year ago. That is the basis of all the estimates, now there are some adjustments that have brought us to the reality of the cost of vessels that I have mentioned over and over and that adjustment took us to a different level in terms of logistics. But what NNPC has kept is the transfer price from our landing location to the marketing companies.
โSo, yesterdayโs (February 6) data showed that these products will land in this country at N295 per litre, which means you have to sell it at N113 to the marketing companies so that they will be able to maintain the current subsidy regime that we are running. It means that you have N185 per litre of subsidy on every product that comes into this country.
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โIf you look at the average we have done of 63 million litres from January 2023 till date, and convert it to 365 days, that means you need N4.2 trillion to meet the fuel subsidy requirements for the country.โ
Noble Reporters Media 