The Federal Government, through the Petroleum Products Pricing Regulatory Agency, has announced a reduction in the ex-depot price of fuel from N81.51 to N77.66 per litre.
Ex-depot price is the actual cost of petrol when it hits the shores of Nigeria from where it was purchased, according to the PPPRA. By the announcement, the ex-depot price was reduced by N3.85 per litre.
The agency in a statement issued on Monday said the reduction became necessary following the Federal Government’s announcement of a reduction in the pump price of fuel from N97 to N87 per litre on Sunday.
“Consequent upon this (Federal Government’s) announcement, the PPPRA, in exercise of its mandate of determining the pricing policy and setting benchmark prices of petroleum products, hereby further announces the new ex-depot price of PMS as N77.66 per litre.
“In view of the foregoing, oil marketers are hereby advised to adhere strictly to this new price regime, as the PPPRA, in conjunction with the Department of Petroleum Resources shall enforce compliance in order to ensure that consumers benefit fully from this new review. In other words, any violation of the prevailing price regime, shall attract appropriate sanctions.
“It is therefore our wish to advise Nigerians against any form of panic-buying, as there are enough products in all depots across the country. We also wish to assure Nigerians that the PPPRA, in exercise of its mandate, is fully committed to ensuring adequate supply and distribution of petroleum product,” the statement said.
It could be recalled the Federal Government announced a downward review of the pump-price of fuel from N97 to N87per litre, with effect from January 19, 2015.
The announcement, which was made by the Minister of Petroleum Resources, Mrs. Diezani Allison-Madueke, was in consonance with Section 6, Clause 1, of the Nigerian Petroleum Act, necessitated by the prevailing volatility in the international oil market and the drop in crude oil price.