PPPRA explained how they arrived at N87 fuel pump price

The Petroleum Products Pricing Regulatory Agency, PPPRA has reveled to Nigerians how they arrived at the stipulated N87 petrol pump price following the sharp fall of crude oil price in the international market.

Based on the landing cost of N74.35 per liter of PMS as at the close of business on Friday 16 January 2014, the executive secreary of the PPPRA said that adding the distribution margin of N15.49 per litre would bring the open market price (or pump price) to N89.84 per litre.


This figure, of course, is more than N87 by N2.84. N87 was the price approved by the FG and announced by Diezani Alison-Madueke, Nigeria's Minister of Petroleum Resources on Sunday.

According to Mr Farouk Ahmed, the executive secretary, this means the FG would be subsidizing petrol by N2.84 at the new price.

He has urged petroleum marketers to adhere to the new price regime.