FOR the third time in three months, the Petroleum Products Pricing Regulatory Agency (PPPRA) on Monday announced a new pump price band of N121.50 to N123.50 per litre of Premium Motor Spirit, (PMS) also known as petrol.

The PPPRA disclosed this in a memo where petroleum marketers across the country were directed to comply with the new pump price band of N121.50 to N123.50 per litre.

In the wake of the outbreak of COVID-19 which affected prices of crude oil at the global markets, the agency announced a reduction in the pump price of PMS from N145 per litre to N125 and stated that  the retail price of petrol would be adjusted monthly to reflect current realities in the global crude oil market.

“Please recall the recently approved pricing regime which became effective March 19, 2020, and the provision for the establishment of a monthly price band within which petroleum marketers are expected to sell PMS at the retail stations.

“After a review of prevailing market fundamentals in the month of May and considering marketers realistic operating costs as much as practicable, we wish to advise of a new PMS guiding pump price with a corresponding ex-depot price for the month of June 2020, as follows; price band N121.50 – N123.50 per litre,” the PPPRA said in the memo.

In March, the Federal Government announced its first review of the petrol pump price per litre for the year from N145 to N125 per litre.

On April 1, the PPPRA, through , Abdulkadir Saidu, its Executive Secretary had announced that all retail petrol outlets should start selling at the new pump price of N123.50k and N125 per litre of petrol.

Oil retailers were to choose between two price bands of N121.50k and N1253.50k at which they were supposed to sell to their customers.

The price review was orchestrated by a drop in crude oil prices due to the spread of coronavirus as the landing cost of petrol hit a record low in March, while the petrol subsidy was temporarily removed.

“Ex-Depot price N102.13 – N104.13 per litre. Ex-Depot for collection N109.78 – N111.78 per litre. All marketers are advised to operate within the indicative prices as advised by the PPPRA,” a section of the memo reads.

Though there has been a glut in the global crude supply, Nigeria heaved a sigh of relief last week when Indian oil firms took in about 6 million barrels of Nigerian crude oil stock after awarding a tender to Total for Akpo crude.

With 50 unsold cargoes of Nigerian crude seeking buyers for June and July consignment, its European demand is largely non-existent and the pump price of petrol is likely to be affected in the coming weeks according to a report.