The Petroleum Products Pricing Regulatory Agency, PPPRA, has
explained how the new price of N87 per litre of petrol was arrived at,
saying it was based on the components of the prevailing petroleum
products pricing template.
The pricing template shows the landing cost, the ex-depot price,
which is the price that products marketers are to pay for products they
lift, and the expected open market price of petroleum products.
The Executive Secretary of PPPRA, Farouk Ahmed, said on Monday that
based on the landing cost of N74.35 per litre of PMS as at the close of
business on Friday, January 16, 2014, the addition of distribution
margin of N15.49 per litre would translate to an open market price, or
pump price of N89.84 per litre.
The price, according to Mr. Ahmed, is more by N2.84 than the N87 per
litre approved by the Federal Government and announced by the Minister
of Petroleum Resources, Diezani Alison-Madueke, on Sunday.
By implication, he said the Federal Government would still be subsidizing the new petrol price by N2.84 per litre.
Mr. Ahmed urged marketers to adhere strictly to the new price regime,
the PPPRA said it would work with the Department of Petroleum Resources,
DPR to enforce compliance to ensure that consumers benefited fully from
the new review.
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