The Nigerian National Petroleum Corporation on Wednesday night announced a reduction in the ex-depot price of petrol from N113.28 per litre to N108 per litre.
The ex-depot price is the price at which the product is sold to marketers at the depots.
It said the price reduction took effect across all its products loading facilities as well as in its throughput operations.
The corporation’s Group General Manager, Group Public Affairs Division, Kennie Obateru, quoted the Managing Director of the Petroleum Products Marketing Company, Musa Lawan, as saying that the new ex-depot price of Premium Motor Spirit (petrol) was a reflection of the company’s market strategy.
Lawan said the strategy was to make more sales while complying with the Petroleum Products Pricing Regulatory Agency’s price template.
He explained that the new price regime would enable the PPMC to boost its sales volumes from the billions of litres of petrol it had in storage while providing affordable price to millions of customers.
Lawan said the new price was arrived at after extensive review of market realities by the PPMC internal price review unit.
The corporation, however, did not state whether the new downward review of its ex-depot price would translate to a reduction in the pump price of PMS.
The PPMC boss further pointed out that Automotive Gas Oil, also known as diesel, being already deregulated, had its prices determined by market forces.
On March 18, 2020, the NNPC reviewed its PMS ex-coastal, ex-depot and NNPC retail pump prices.
Thus, effective March 19, 2020, the NNPC ex-coastal price for PMS was reviewed downwards from N117.6/litre to N99.44/litre. Its ex-depot price was also reduced from N133.28/litre to N113.28/litre.