The average pump price of Premium Motor Spirit (popularly known as Petrol) increased by 0.2% in June 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 increased to N145.4 in June 2019, up from N145 in the previous month. However, Year-on-year, the average price of PMS decreased by 1.8% in the period under review.
Prices across States: At the states level, petrol was sold at different pump prices in June. Out of all the 36 states in the country, the consumers in Kogi, Kebbi, and Bayelsa paid the highest pump prices for petrol at an average of N147.91, N146.43, and N146.25 respectively.
States with the lowest average price of Premium Motor Spirit were Abuja (N144.20), Katsina (N144.13) and Benue (N144.00).
Price spikes acrosszones: Across the six geopolitical zones, consumers in the South-South region of Nigeria paid the highest average price of N145.55 in June. This means consumers in the region paid the highest average prices of petrol for two consecutive months.
Meanwhile, the North Central zone ranks second with the highest average petrol price of N145.44. This, however, means the average price of petrol also increased in the region.
The remaining zones are ranked in this order – South East (₦154.42) North East (₦145.51), South West (₦145.17) and North West (₦145.11)
Recent Developments: An earlier reportrevealed that a new petrol pump price regime may soon emerge, despite the Nigerian National Petroleum Corporation (NNPC) dismissal of reports on an imminent pump price increase.
Recall that the NNPC GMD, Mallam Kyari, recently stated while speaking during a courtesy visit to the Senate President, Ahmed Lawan, at the National Assembly Complex in Abuja, that it is very difficult to make petrol available at N145. In the meantime, while reports of Petrol price increase have been quashed, sources have revealed a new price regime may soon emerge.
Impacts on key agents: The increase in the average pump price of petrol means businesses and individuals who use the product as intermediate and finished goods will have to pay more to get the product.
For businesses, it means more cost of production which may bite hard on their revenue and eventually transit into high prices for goods and services produced.
On the other hand, the high price of an essential community like petrol means the individual user will have to part with more cash to get the product, and this invariably affects consumers ability to buy more.
Overall, sales of the product may be affected, and if this happens, it will not be a good business for investors in the sector.