The average pump price of premium motor spirit (popularly known as Petrol) decreased by 0.4% in May 2019. This is revealed in the latest Petrol price watch data released by the National Bureau of Statistics (NBS).
According to the NBS‘s data, the average pump price paid by consumers for petrol decreased to N145 in May 2019, down from N145.9 in the previous month. Year-on-year, the average price of PMS decreased by 3.4% in the period under review.
Petrol Pump Price across States: At the States level, Petrol was sold at different pump prices in May. Out of all the 36 states in the country, the consumers in Ebonyi, Kwara, and Niger paid the highest pump prices for petrol at an average of N146.25, N146.14, and N146.11 respectively.
Petrol Prices highest in South-South: Across the six geopolitical zones, consumers in the South-South region of Nigeria paid the highest average prices of N145.39 in May, as against the previous month when the highest average prices of petrol were recorded in Northeast Nigeria.
Meanwhile, the Southeast zone still ranks second with the highest average petrol price of N145.35. This, however, means the average prices of petrol dropped in Southeast Nigeria by ₦1.05.
The remaining zones are ranked in this order – North Central (₦145.29), South West (₦144.96), North West (₦144.83) and North East (₦144.434).
The reduction in the average Petrol pump prices for May 2019 has defied reports that prices of petrol may hike following the face-off between the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) and the Nigerian National Petroleum Corporation (NNPC).
DAPPMAN had accused the NNPC of selling at high prices, disclosing that the increase in the price of PMS sold to them by NNPC from N111 per litre to N117 per litre had made many marketers to close shop because they were not making a profit. The Executive Secretary, DAPPMAN, Olufemi Adewole, stated;
“The increase from N111 per litre to N117 was done by the NNPC over a year ago and marketers have been finding it tough, which is why most marketers are no longer in business. I have written letters several times that it should be reversed and that is why a lot of marketers are no longer importing.”
However, the NNPC responded that it cannot sell petrol at a loss, regardless of the demands of oil marketers, as it buys the commodity at N116.28 per litre.
“As for NNPC, we buy the product at 116.28/litre from the Federation through the crude for products exchange programme or DSDP. We cannot sell at a loss. They should integrate like the majors (major oil marketers) to sell at retail outlets where there is an N6 retailers’ margin built therein instead of just stopping at depots.”
The Bottomline: In the meantime, there is a high probability that there will not be a hike in petrol prices across the country. The NNPC Group General Manager in charge of Group Public Affairs Division, Ndu Ughamadu, had recently disclosed that the Government has no plan to increase petrol price.
“We have since cleared the air that there is no change in the pump price (of petrol) until the government has provided alternatives to the citizens. On DAPPMAN, they should refer their case to PPPRA who is the pricing regulator.”