The federal government will have to pay N40.70 for every litre of imported petrol, to ensure the retail price remains N145 per litre. The group managing director of the Nigerian National Petroleum Corporation (NNPC), Maikanti Baru, revealed this at a press conference in Abuja. Baru stated that the landing cost of petrol is now N171 per litre.
“The landing cost comprising CIF (cost, insurance and freight) of petrol as of last Friday was in the neighborhood of $620 per metric tonne, so with the official exchange rate of N305 to the dollar, the landing cost should be N171.40 per litre,” he said. “The government has consistently indicated that N145 per litre is the price and it has mandated the NNPC to keep the depot price at N133.28 per litre, so as to maintain a cap of N145 per litre.
“So, there is a lot of profit in between after taking the transportation cost of N7 off; there is sufficient margin for marketers in that PPPRA template at the price cap.” According to the Petroleum Products Pricing Regulatory Agency (PPPRA) price template, marketers are allowed a profit margin of N14.30 to cater for distribution costs.