The Federal Government has announced that from January 1, 2016, all retail stations of the NNPC would start selling Premium Motor Spirit, otherwise petrol at N86 per litre, while other oil marketers would sell at N86.50k per litre.
Farouk Ahmed, the Executive Secretary, Petroleum Product Pricing Regulatory Agency (PPPRA), announced this at a news conference on Tuesday in Abuja.
According him, the revised template, which will be reviewed on quarterly basis, is geared towards ensuring an efficient and market-driven price that will reflect current realities.
He said, “Since 2007, while crude oil price had been moving up and down, the template remains 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 would be a quarterly review and if there is any major shift, the Minister of State for Petroleum Resources would be expected to call for a review, either upward or downward.
“If there is no major shift, the price would continue from January to March 2016.
”In addition, there would be a Product Pricing Advisory Committee that would be set up to advise the PPPRA concerning movements in the price of crude oil.”
The executive secretary further stated that the NNPC would sell lower than other oil marketers, due to the fact that it was cheaper for it to import, compared to both the independent and major oil marketers.