Nigeria Increases Petrol Price as Crude Nears $42.4pb

Oil prices extended gains on Thursday, with WTI crude near $40.1 a barrel and Brent crude near $42.4 a barrel as investors try to shrug off coronavirus concerns.

Better-than-expected manufacturing PMI figures for both China and the US released on Wednesday, hopes for a new coronavirus vaccine and the biggest draw in US crude stockpiles in 6 months lifted investors mood.

Traders also await the US payrolls release with the US economy seen adding a record high 3 million jobs. On the other hand, the number of coronavirus infections continues to spike worldwide and tensions between the US and China over the Hong Kong national security law mount.

The Nigeria’s Petroleum Products Pricing Regulatory Agency (PPPRA) on Wednesday announced new retail price for petrol for the month July to be between N140.80 and N143.80 per litre price band.

The new price arrangement replaces the previous price band of N121.50 and N123.50 per litre announced by the agency for June 2020.

“After a review of the prevailing market fundamentals in the month of June, and considering marketers’ realistic operating costs as well as practicable, we (PPPRA) wish to advise a new PMS (premium motor spirit) pump price band of N140.80-N143.80 per litre for the month of July 2020 the new retail price band for premium motor spirit (PMS), popularly called petrol, for June 2020.

“Kindly note that the ex-depot price for collection includes the statutory charges of bridging fund, marine transportation average, National Transport Allowance (NTA) and administrative charge. All marketers are advised to operate within the indicative prices as advised by the PPPRA.”

The new price band was contained in a memo No. PPPRA.4/9/017/C.2/IV/705 the agency sent to petroleum products marketers on Wednesday, July 1.

With the new price, the implication is that all petroleum products marketing companies throughout the country are permitted to sell at any price with the approved price band of N140.80 (lower limit) and N143.80 (upper limit) during the month.

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