FG Increases Price Of Kerosene To N83 Per Litre

Vanguard reports that the Petroleum Products Pricing Regulatory Agency (PPPRA) released its product pricing template on Sunday, January 24, in Abuja.

The agency stated that the N83 per litre price applies only to the Nigerian National Petroleum Corporation (NNPC). That means that other petrol stations and dealers can sell kerosene higher than the stipulated amount.

It would be noted that the hike in the price of kerosene came at a time when the price of crude oil dropped to record low, with the price of petroleum products dropping significantly in a number of countries.

The PPPRA’s template showed that at N83 per litre, the government will be making a gain of N10.72 on every litre as it puts the expected open market price, which is the landing cost plus total margins at N72.28 per litre. The expected open market price is the prevailing open market rate for the product in Nigeria, after taking certain costs into consideration.

The template put the landing cost of ‎the product at N57.98 per litre, while the total margin was put at N14.30. The retailers’ margin was put at N5 per litre; transporters at N3.05 per litre, and dealers at N1.95 per litre.

It further put the bridging fund at N5.85 per litre; marine transport average at N0.15 and Administrative‎ Charges – N0.15.

According to the PPPRA’s template, the official ex-depot price, which depot owners would sell to marketers, is N68.70 per litre. The official ex-depot price for collection is N73 per litre, while ex-coastal price is N68.02 per litre.