In a statement by the Petroleum Product Pricing Regulatory Agency (PPPRA) stated that the current retail price indicates an N18.50k increase as the agency recommended between N140.80 and N143.80 as the new retail band for a litre of petrol.

“Please recall the provision for the establishment of a monthly price band within which petroleum marketers are expected to sell PMS at the retail stations, based on the existing price regime,” the statement said.

“After a review of the prevailing market fundamentals in the month of June and considering marketers’ realistic operating costs, as much as practicable, we wish to advise a new PMS pump price band of N140.80 – N143.80/litre for the month of July 2020,” it added.

The agency said that the new ex-depot price includes the statutory charges of bridging fund, marine transport average, national transport allowance (NTA) and the administrative charge.

The federal government, in March, announced that the retail price of petrol would be adjusted monthly to reflect realities in the global crude oil market as coronavirus has affected global economies.

The decision, according to the government, is to make prices more favourable for consumers as well as stimulate investment in the downstream.

However, marketers complained that the government’s intervention and interest was without allowing the market forces to drive the sector.

The pump price was fixed at N125 per litre in March and was reviewed downwards in April to N123.50.

In May, only the ex-depot price was reviewed downwards to N108 and the retail price was adjusted to N121.50 in June.