The ex-depot price of Premium Motor Spirit, otherwise known as petrol has increased from N138.62 to N151.56 in September, according to reports by several news organisations.
Wednesday’s reports cited an internal memo from the Pipelines and Product Marketing Company (PPMC).
The PPMC, a subsidiary of the Nigerian National Petroleum Corporation (NNPC) on Wednesday informed the depot’s owners and other stakeholders in the petroleum marketing business of the increase in price through a memo signed by the Lead Sales, Ibadan Depot, Mr Abalaka.
The ex-depot price is the price at which the depot owners sell the commodity to retail outlets across the country
According to the memo, the new product price adjustment will take effect from September 2, 2020. It did not state the Expected Open Market Price of the commodity.
The PPMC and the Petroleum Pricing Product Regulatory Agency (PPPRA) have not confirmed or denied the reports.
Sources within both agencies maintain that the memo did not necessarily amount to an increase in price.
Also, a source in the Independent Petroleum Marketers Association (IPMAN) said they are yet to get the official directive from the government agency, and they have not directed its members to adjust their retail pump price to reflect an increase.
The source added that it was monitoring trends and will make the necessary adjustment following advice by the PPRA.
The PPMC has since March this year, provided a guiding template through the ex-depot price of Premium Motor Spirit (PMS).
This followed the announcement by the Federal Government earlier in the same month that the downstream sector had been deregulated and fuel subsidy removed.
That policy shift essentially made way for a monthly price band in accordance with market forces.