Malam Mele Kolo Kyari, Group Managing Director, NNPC

Nigeria cuts fuel prices as IPMAN urges enhanced local oil refining

* Moves to make petroleum products prices affordable to consumers

Isola Moses | ConsumerConnect

As the nation begins to grapple with the socio-economic realities amid the partial and guided lockdown, the Nigerian National Petroleum Corporation (NNPC) has announced a reduction in the ex-depot price of Premium Motor Spirit (PMS) from N113.28k per litre to N108.00K per litre.

Dr. Kenny Obateru, NNPC Spokesman, revealed this in a statement, in Abuja, FCT, Wednesday, May 6, according to agency report.

Obateru stated that Musa Lawan, Managing Director of Petroleum Products Marketing Company (PPMC), disclosed the new ex-depot price of PMS reflects the company’s market strategy.

The strategy, he said, would help to make more sales as it complies with the Petroleum Products Pricing Regulatory Agency’s (PPPRA) price template.

Lawan noted that the new price regime would enable the PPMC to boost its sales volumes from the billions of litres of petrol in storage besides making prices of petroleum products affordable price to millions of consumers.

The new price was arrived at after an extensive review of the market realities by the PPMC internal price review unit, said the PPMC boss.

He, nevertheless, observed that the price of Automotive Gas Oil (AGO), otherwise called diesel, which has already been deregulated, was determined by market forces.

It is recalled the NNPC March 18, 2020, reviewed its PMS ex-coastal, ex-depot and NNPC Retail pump prices.

Thus, effective March 19 NNPC ex-coastal price for PMS was reviewed downwards from N117.6/litre to N99.44/litre.

Ex-depot price also was reduced from N133.28/litre to N113.28/litre.

Now, the Independent Petroleum Marketers Association of Nigeria (IPMAN) has urged the authorities in the energy sector to increase local refining capacity.

Mr. Chinedu Okoronkwo, President, IPMAN, Thursday, May 7, in Lagos, stated the Federal Government should encourage investment in modular refineries in the country.

An oil refinery in Nigeria

According to Okoronkwo, Nigeria needs to increase its local refining capacity to mitigate the impact of the crash in global crude oil price on the nation’s economy.

He stated: “It is not all gloom. This will allow many people to see the opportunities on how to come into refining our products locally.

“We believe the government can encourage this by giving them incentives.

“When we refine here locally, we can even sell below what we are selling now to Nigerians which will be good for our economy.”

The IPMAN chief said that “we need more modular refineries so that we will be able to enjoy our God-given resources.

“There is no more subsidy, and it is the market value that determines the price.

“We have started the journey to totally deregulate the market like what is obtainable in AGO (diesel), and we will get there gradually.”

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