Nigeria increases price of kerosene to N83 per litre

The Petroleum Products Pricing Regulatory Agency, PPPRA, has
increased the price of Household Kerosene from N50 to N83.
This is contained in its products pricing template, released on
Sunday in Abuja.
The agency stated that the N83 per litre price applied only to the
Nigerian National Petroleum Corporation, NNPC, outlets.
The template also showed that at N83, the Federal Government
will be making a gain of N10.72 on every litre.
It further puts the expected open market price, which is the
landing cost plus total margins at N72.28 per litre.
The expected open market price is the prevailing open market rate
for the product in Nigeria, after taking certain costs into
consideration.
Giving a breakdown of the price, the PPPRA template put the
landing cost of the product at N57.98 per litre, while the total
margin due middlemen was put at N14.30.
The retailers’ margin was put at N5 per litre; transporters at N3.05
per litre, and dealers at N1.95 per litre.
It further put the bridging fund at N5.85 per litre; marine transport
average at N0.15 and Administrative Charges – N0.15.
It stated that the official ex-depot price, which depot owners
would sell to marketers, is N68.70 per litre. The official ex-depot
price for collection is N73 per litre, while ex-coastal price is N68.02
per litre.
The official price difference is not expected to matter much to
millions of poor Nigerians who are used to buying the product at
over N100 per litre.

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