The Petroleum Products Pricing Regulatory Agency (PPPRA) has set N211.11 per litre as the “guiding price” of Premium Motor Spirit (PMS) for the month of March 2021.
An appraisal of the pricing template, published on the agency’s website based on the average costs of imported petroleum products, puts the average price per ton of the commodity at $561.96, or N169.22 per litre.
The average freight rate coat (North-West Europe to West Africa) was about $21.63 per ton, or N6.51 per litre.
According to the agency, this translated into an expected ex-coastal price of about N175.73 per litre.
Correspondingly, the pricing template for the period between February 1 and 28, 2021, had also put the lower band of the new fuel price for the month about N209.61 per litre with the upper band calculated at N212.61 per litre.
Additional analysis of the component charges in the pricing model indicated that average littering expenses stood about N4.81 per litre: Nigerian Ports Authority (NPA) charge N2.49 per litre; NIMASA charge N0.23 per litre; Jetty Thru put of N1.61 per litre and Storage charge of N2.58 per litre and average finance cost of N2.17 per litre, translating to an expected landing cost per litre of N189.61.
The template threw up an expected ex-depot price for wholesale products marketers at N206.42 per litre given all other component charges factored into the price computation.
The charges included wholesale margin of N4.03 per litre; administration charge of N1.23 per litre; transporters’ allowance (NTA) of N3.89 per litre; Bridging Fund cost of N7.51 per litre and Marine transport average (MTA) of N0.15 per litre.
Available statistics further showed that the addition of retailers’ margin of N6.19 per litre “brings the expected retail price on lower band to N209.61 per litre and expected retail price at the upper band to N212.61 per litre.”
However, the PPPRA explained that the guiding price of PMS, popularly called petrol, was calculated at an average of 211.11 per litre.
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