The Nigerian government on Monday reduced the pump price of Premium Motor Spiritpopularlyknown as petrol from N123.50 to N121.50.
In a circular issued to marketers, the Petroleum Products Pricing Regulatory Agency stated, “Please recall the recently approved pricing regime which became effective on March 19, 2020, and the provision for the establishment of a monthly price band within which petroleum marketers are expected to sell PMS at the retail stations.
“After a review of prevailing market fundamentals in 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 tN123.50 per litre.”
However, the marketers have alleged that they were not carried along in the decision-making process.
The Executive Secretary, Major Oil Marketers Association of Nigeria, Clement Isong, noted that while the stakeholders, especially station dealers, would “struggle to implement” the new price, there was need for government to always carry the traders along in arriving at a price for theproduct.
Also speaking, national president of the Petroleum Products Retail Outlets Owners Association of Nigeria, Dr. Billy Gillis Harry, pointed out that the decision would create losses for marketers, as their purchasing powerwould be adversely impacted.