The Petroleum Product Pricing Regulatory Agency, PPPRA, has announced a new price regime of Premium Motor Spirit (PMS), and other petroleum products as approved by the government.
Consequent on the new NNPC Ex-Coastal price and taking into consideration all existing approved margins on the PPPRA pricing template, the new pump price of PMS is N125.00 per litre, effective March 19, 2020.
This new price will guide PMS pricing in Nigeria for the rest of the month of March 2020.
Going forward, PPPRA will continue to monitor trends in market fundamentals and announce a monthly Guiding/Expected Open Market price at the beginning of every month, effective April 1, 2020.
It is expected that the new price regime will emplace a more transparent pricing model, stimulate investment growth in the downstream sector and encourage resumption of products importation by Oil Marketing Companies (OMCs), translating to more job creation as many depots and facilities that are presently dormant will now become active.
The directive of government to the NNPC to reduce the Ex-Coastal price of PMS, despite the fact that the current stock of product was imported during the months of January and February, 2020 is highly commendable, although this action is not without costs to the Corporation.
