Filling stations belonging to the Nigerian National Petroleum Corporation will from January 1, 2016 sell petrol for N86 per litre, while other stations belonging to different groups of marketers will sell the commodity for N86.5 per litre, the Petroleum Product Pricing Regulatory Agency announced on Tuesday after getting approval from the Federal Government.
The agency also announced the approval of the first quarter 2016 petrol import allocation of three million metric tonnes to the NNPC and other oil marketers.
The Executive Secretary, PPPRA, Mr. Farouk Ahmed, stated that the reduction in the price of Premium Motor Spirit (petrol) was due to the revised components of the petroleum product pricing template for PMS and House Hold Kerosene.
Ahmed explained that the revised template would be reviewed on quarterly basis, adding that it was geared towards ensuring an efficient and market-driven prices of petroleum prices that would reflect current realities.
The PPPRA boss said, “Since 2007, while crude oil price has been moving up and down, the template has remained the same. This made it necessary for us to introduce a mechanism whereby the template would be sensitive to the price of crude oil.
However, the template is not static, as there will be a quarterly review, and if there is any major shift, the Minister of State for Petroleum Resources will be expected to call for a review, either upward or downward.
PUNCH
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