Deregulation! IPMAN Fixes Pump Price At N162 Per Litre After FG New Fuel Increment

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has directed its members to begin sales of fuel at N162 per litre at filling stations.

This comes following Wednesday, September 2, 2020, reported announcement by the Pipelines and Product Marketing Company (PPMC) of a new price regime which increased the premium motor spirit price to N151.56 per litre.

PPMC had announced the new increment in a internal memo from Ibadan depot to all stakeholders with reference number PPMC/IB/LS/020 dated September 2, 2020 and signed by D.O Abalaka.

According to PPMC, “Please be informed that a new product price adjustment has been effected on our payment platform.

“To this end, the price of Premium Motor Spirit (PMS) is now one hundred and fifty-one naira, fifty-six kobo (N151.56k) per litre.

This takes effect from September 2, 2020″, the statement reads.

Following this development, IPMAN, in a statement by its southwest Zonal Chairman, Alhaji ‘Dele Tajudeen, in Abeokuta, the Ogun state capital, said his members have been directed to readjust their pump to read N162 per litre of fuel.

He said that the readjustment was to caretaker for taxes, levies and overhead cost of lifting the fuel from depot to the dispensing point.

“IPMAN members would have to make provision for the cost of diesel to run generator that will power the dispensing machines; pay the cost of transporting the fuel from the depot to their respective filling stations and also settle their statutory levies with the appropriate regulatory agencies.

“That by the time they finish paying all these levies, the cost of discharging fuel at the petroleum filling stations would have shored up to N160, hence dispensing the product at N162 will enable IPMAN members to be able to pay the staff bills and the stations’ gains”, he stressed.

BIGPEN recalls Nigeria had in June, 2020, officially relaxed its policy, which previously controlled and set the price of petrol with the Petroleum Products Pricing Regulatory Agency’s, (PPPRA) removal of the cap on the price of the commodity, giving traders and retailers the freedom to control and set the price.

The PPPRA, in a document released Thursday titled, ‘Market Based Pricing Regime for Premium Motor Spirit (PMS) Regulations, 2020,’ said the price of petrol will be wholly determined by the markets.

Executive Secretary, Mr. Abdulkadir Saidu of the agency however said it would continue to monitor the international crude oil market monthly and advise the Nigerian National Petroleum Corporation (NNPC) and oil marketers on the monthly guiding price for the commodity.

“In exercise of the powers conferred on it by Sections 7 and 24 at the Petroleum Products Pricing Regulatory Agency (Establishment) Act. No. 8 of 2003, and all other powers enabling it in that behalf, the Petroleum Product Pricing Regulatory Agency (The Agency), with the approval of the President hereby makes the following Regulation:

“Short title: Market Based Pricing Regime for Premium Motor Spirit (PMS) using the Pricing Template of the Petroleum Products Pricing Regulatory Agency.

“The price cap per liter in respect of Premium Motor Spirit (PMS) is removed from the commencement of these Regulations. From the commencement of these Regulations, a market-based pricing regime for Premium Motor Saint (PMS) shall take effect.

“The Agency shall monitor market trends and advise the NNPC and oil marketing companies on the monthly guiding Market-Based Price.

“The price of Premium Motor Spirit (PMS) advised by the Agency shall be guiding retail price at which the product shall be sold across the country.

“This regulation may be cited as the Premium Motor Spirit (PMS) Market Based Pricing Regime Regulations, 2020, made this 20th day of March 2020.”