The Petroleum Product Pricing Regulatory Agency (PPPRA) has recommended an upward review of the retail pump price of petrol from the previous N121.50.
The agency has recommended petrol retail band for a litre of petrol to be sold for between N140.80 and N143.80.
The statement, which was signed by Abdulkadir Saidu, PPPRA executive secretary,read: “Please recall the provision for the establishment of a monthly price band within which petroleum marketers are expected to sell PMS at the retail stations, based on the existing price regime”.
“After a review of the prevailing market fundamentals in the month of June and considering marketers’ realistic operating costs, as much as practicable, we wish to advise a new PMS pump price band of N140.80 – N143.80/litre for the month of July 2020.”
Saidu said the new ex-depot price includes the statutory charges of bridging fund, marine transport average, national transport allowance (NTA) and the administrative charge.
He also advised all petroleum marketers to operate with the price band advised by the agency.
The federal government, in March, announced that the retail price of petrol would be adjusted monthly to reflect realities in the global crude oil market.
The pump price was fixed at N125 per litre in March and was reviewed downwards in April to N123.50.
In May, only the ex-depot price was reviewed downwards to N108 and the retail price was adjusted to N121.50 in June.
The price of crude oil increased to above $40 per barrel in June as a result of supply cuts agreed on by the Organisation of Petroleum Exporting Countries (OPEC) and increasing demand as economies reopen across the world.