The federal government on Wednesday raised the pump price of fuel aka premium motor spirit to between N140.80 and N143.80 for July.
The latest price band, the highest price movement in the last few months was announced by the Petroleum Products Pricing Regulatory Agency (PPPRA) on Wednesday in a circular to oil marketers.
The PPPRA, in a circular dated July 1, 2020 to marketers, said, “After a review of the prevailing market fundamentals in the month of June and considering marketers’ realistic operating costs, as much as practicable, we wish to advise a new PMS pump price band of N140.80-N143.80 per litre for the month of July 2020.
The agency explained the rise in petrol price for July was due to the increase in global crude oil prices, adding that the change in price became necessary as PMS had been deregulated.
The PPPRA further stated that it arrived at the new band after taking into consideration the operating costs by marketers.
The Executive Secretary of the agency, Mr Saidu Abdulkadir, in the circular warned marketers against selling the product above the N143.80 as set by the government.
“Please recall the provision for the establishment of a monthly price band within which petroleum marketers are expected to sell petrol at the retail stations, based on the existing price regime.
“All marketers are advised to operate within the indicative prices as advised by the PPPRA.”
Recall that on March 31, this year, the government announced a downward movement of PMS price of N121.50 and N123.50 per litre, stating it was an indication of the government’s commitment and resolve to allow market forces to determine the price Nigerians get fuel.
Preparing the minds of oil marketers and Nigerians on what lies ahead, the agency said Nigerians would get the PMS at a retail price to be largely determined by the international prices of crude oil.
Since the announced deregulation of the petroleum downstream sector early this year, the Wednesday’s increase remains the single highest price movement the PPPRA has come up with in its price ‘modulation’ role.