The pump price of Premium Motor Spirit (PMS), which is expected to be modulated monthly by the Petroleum Products Pricing Regulatory Agency (PPPRA), has become uncertain as some marketers yesterday directed their members to sell at N150 per litre.

Projected estimate by The Guardian shows the price may hit N157 per litre going by the move by the Pipelines and Products Marketing Company (PPMC), a subsidiary of Nigerian National Petroleum Corporation (NNPC), to increase the ex-depot price of the white product.

While Independent Petroleum Marketers Association of Nigeria (IPMAN) has already directed members to sell at N150 per litre, a statement by PPMC yesterday increased the wholesale price to N138.62.

In July, the approved PPPRA price ranged from N140.80 to N143.80 per litre price when the landing cost with wholesale charges stood at N124.84 should the marketers factor the N18.97 extra charges for distribution margin, Transporter Allowance (NTA), retailer margin, bridging fun, marine transport average as well as administration charges, the pump price could settle at about N157 per litre before the end of August.

In March this year, the Federal Government opted for deregulation of the downstream sector of the oil and gas industry as the Minister of State for Petroleum Resources, Timipre Sylva, stated that the government would modulate the pump monthly, using market realities.
While PPPRA, charged with the responsibility, had issued a monthly guideline from March to July, the agency has reportedly failed to provide the guideline for August, leaving some marketers to effect changes.

Spokesperson for PPPRA, Folashade Kayode, declined comment, directing The Guardian to one of the agency’s General Marketer, Kimchi Apollo.
When contacted, Apollo did not respond to phone calls and text messages.

Reacting to the development, the Independent Petroleum Marketers Association of Nigeria (IPMAN), yesterday instructed its members to commence sale of fuel at the new pump price of N150 per litre.

IPMAN’s directive came few days after the Petroleum Products Marketing Company (PPMC), announced the new price modulation.

A statement signed by IPMAN Chairman, Kano chapter, Bashir Danmallam, said members would comply with PPMC instruction without hesitation.

According to him, the directive was also in compliance with government’s earlier statement that it would review upward or downward the price of the commodity on monthly basis depending on the price at the international market.

PPMC had, in a memo signed by its Manager Sales, Mohammed Bello, on Tuesday, fixed the depot price of premium motor spirit at N138. 62 per litre.

“Please be informed that the management has approved ex-depot price of petroleum products, including Premium Motor Spirit (petrol) at N138. 62 per litre,”the memo read.

Similarly, the statement urged private depots to also increase their price as they would sell the commodity to their members at N139. 5 per litre.

Danmallam asked all members under his jurisdiction to comply with the new price regime by making sure no one sells above the approved ceiling of N150 per litre.

Danmalam assured the public of availability of petroleum products at all times.

Meanwhile, the NNPC, in May this year, made N238.33 billion and expended N235.66 billion.

The oil company, in its monthly financial and operational records for the period, recorded a trading surplus of N2.68 billion compared to the N30.81 billion loss posted for the preceding month when the disruptive impact of COVID-19 was at its peak.

The corporation achieved a 43 per cent drop in pipeline vandalism.

The organisation noted that almost 109 per cent of the increased revenue for the month under review was sequel to improved performances by some of its strategic business units.

While the Nigerian Petroleum Development Company’s (NPDC) impressive scorecard held its root in robust market fundamentals, the Nigerian Gas Marketing Company (NGMC), on its part, had its 257 per cent profitability linked to improved debt collection.

Similarly, the Pipelines and Product Marketing Company’s (PPMC) 250 per cent surplus came from investment dividend and dip in landing cost.

The corporation’s corporate headquarters’ deficit ebbed by 47 per cent in May, while NNPC Retail, Integrated Data Services Limited (IDSL), NNPC Shipping and Ventures also contributed positively to the month’s performance.

According to the report, Mosimi-Ibadan pipeline axis accounted for 38 per cent of the vandalised points, just as Atlas Cove-Mosimi axis recorded 19 per cent. Suleja-Kaduna logged 16 per cent of the breaks, while other locations make up for the remaining 27 per cent.

NNPC noted it would keep the economic saboteurs at bay through its subsisting collaborations with local communities and other critical stakeholders.

The corporation said it strictly monitored the daily stock of Premium Motor Spirit, popularly known as petrol, to achieve smooth distribution and contain scarcity, adding that 950.67million litres of white products were sold by the downstream subsidiary, PPMC, during the period.

“This comprised 950.67million litres of PMS only with no Automotive Gas Oil (AGO) or Dual Purpose Kerosene (DPK).

“Total sale of white products for May 2019 to May 2020 stood at 19,865.80 million litres and PMS accounted for 19,704.49 million litres or 99.19 per cent,” a statement signed by NNPC spokesperson, Kennie Obateru, stated.

Accordingly, N92.58 billion was from the sale of white products in May 2020, as total revenue generated from the materials for May 2019 to May 2020 stood at N2,393.88 billion, where PMS contributed about 98.84 per cent of the total sum with a value of N2,366.15 billion.

In the gas sector, NNPC said natural gas production in May 2020 increased by 2.38 per cent at 226.51 billion cubic feet (BCF), translating to an average daily production of 7,480.36 million standard cubic feet (mmscfd). Likewise, the daily average natural gas supply to gas power plants increased by 5.87 per cent to 834mmscfd, equivalent to power generation of 3,128MW.