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The persistent decline in the price of crude oil in the international market has forced down the landing cost of Premium Motor Spirit, also known as petrol, by 34.2 percent to N92.89 per litre as at Wednesday from N141.07 per litre as at January 31, 2020.
This has led to the Expected Open Market Price, EOMP price of petrol dropping to N112.26 per litre as at the close of business, Wednesday, March 11, 2020, according to data released by Petroleum Products Pricing Regulatory Agency, PPPRA, yesterday.
EOMP is the price PPPRA uses to determine the price at which PMS is to be sold, and which would have been the price of the commodity if the sector had been deregulated. It is the major determinant of the amount the Federal Government is paying as subsidy and the amount the government and marketers are earning from the sale of the commodity.
The drop in the price of crude oil forced down the Cost plus Freight of the commodity to Nigeria by 35.81 per cent, from $575.81 per metric tonne, an equivalent of N131.82 per litre as at the close of trading, January 31, 2020 to $369.62 per metric tonne, an equivalent of N84.60 per litre.
The price as at Wednesday, N112.26 per litre, represented a decline of 2.02 per cent compared to the expected open market price of N114.53 per litre recorded on Tuesday, March 10, 2020.
Giving a breakdown of the PMS pricing template, the PPPRA disclosed that cost plus freight of PMS to Nigeria stood at $369.62 per metric tonne, an equivalent of N84.60 per litre; while lightering expenses stood at N2.75 per litre and Nigerian Ports Authority charges stood at N0.84 per litre.
Nigerian Maritime Administration and Safety Agency, NIMASA, charges stood at N0.22 per litre; jetty throughput charge N0.60; storage charge N2; and financing cost N1.92; putting the landing cost of PMS at N92.89 per litre.
Adding the total distribution margins of N19.37 per litre to the Landing Cost of N92.89 per litre, the PPPRA put the Expected Open Market Price, EOMP, of the commodity at N112.26 per litre.
However, the PPPRA template revealed that the ex-depot price of the commodity, which is the price at which the NNPC sells to oil marketers, currently stands at N125.63 per litre; while the Ex-depot price for collection stood at N133.28 per litre.
The PPPRA explained that Ex-depot for collect price comprise Ex-depot price, inclusive of bridging allowance, Marine Transportation Allowance, MTA, and administrative charge.
The drop in the price of crude oil forced down the Cost plus Freight of the commodity to Nigeria by 35.81 per cent, from $575.81 per metric tonne, an equivalent of N131.82 per litre as at the close of trading, January 31, 2020 to $369.62 per metric tonne, an equivalent of N84.60 per litre.
The price as at Wednesday, N112.26 per litre, represented a decline of 2.02 per cent compared to the expected open market price of N114.53 per litre recorded on Tuesday, March 10, 2020.
Giving a breakdown of the PMS pricing template, the PPPRA disclosed that cost plus freight of PMS to Nigeria stood at $369.62 per metric tonne, an equivalent of N84.60 per litre; while lightering expenses stood at N2.75 per litre and Nigerian Ports Authority charges stood at N0.84 per litre.
Nigerian Maritime Administration and Safety Agency, NIMASA, charges stood at N0.22 per litre; jetty throughput charge N0.60; storage charge N2; and financing cost N1.92; putting the landing cost of PMS at N92.89 per litre.
Adding the total distribution margins of N19.37 per litre to the Landing Cost of N92.89 per litre, the PPPRA put the Expected Open Market Price, EOMP, of the commodity at N112.26 per litre.
However, the PPPRA template revealed that the ex-depot price of the commodity, which is the price at which the NNPC sells to oil marketers, currently stands at N125.63 per litre; while the Ex-depot price for collection stood at N133.28 per litre.
The PPPRA explained that Ex-depot for collect price comprise Ex-depot price, inclusive of bridging allowance, Marine Transportation Allowance, MTA, and administrative charge.
