The Nigerian National Petroleum Corporation (NNPC) publicly announced a new petrol price in Nigeria at a #5.28 reduction in the existing pump price of ex-warehouse cost of petroleum from N113.28k per liter to N108 per liter yesterday on its official Twitter page.
The development with the new petrol price in Nigeria is an indirect offshoot of the March 19, 2020 audit declaration for NNPC’s petroleum ex-beach front, ex-station and NNPC Retail siphon costs.
This audit led to the assessment of the partnership’s ex-waterfront cost for petroleum causing a decrease from N117.6 per liter to N99.44 per liter, while for ex-warehouse cost, there was a decrease from N133.28 per liter to N133.28 per liter on 19th March 2020.
New petrol price in Nigeria -second review in the space of about two Months
Now, for the second time in about two months, the price is being reviewed now from N113.28k per litre to N108.00k per litre amounting to a 4.8% drop in prices.
With this new development, the NNPC has ordered that Nigerians should now buy petrol at the new petrol price of one hundred Naira (N108.00) per litre.
The announcement was made in Abuja by the corporation’s Group General Manager, Group Public Affairs Division, Dr. Kennie Obateru.
While citing the Managing Director of the Petroleum Products Marketing Company (PPMC), Mr. Musa Lawan, Obateru explained that the new ex-warehouse cost of petroleum is an indication of NNPC’s zest for more deals while operating within the Petroleum Products Pricing Regulatory Agency’s (PPPRA) on value format. (Following the fall in global Oil prices in April.)
This market procedure will help the PPMC to scale returns on business volumes with its reduced petrol price and also ensure that the billions of liters of petroleum it has doesn’t go to waste.
He said the new cost was shown up at after broad survey of market real factors by the PPMC inward value audit unit.
The PPMC boss revealed that Automotive Gas Oil (AGO), is now also being deregulated, so its costs will be determined by the interaction of market forces.