The Federal Government has announced an increase of the official pump price of DPK commonly called Household Kerosene from N50 per litre to N83 per litre.
The Street Journal reports that kerosene has been selling for over N100 per litre at the unofficial or black market price in the country.
A release by the regulating agency, the Petroleum Products Pricing Regulatory Agency, PPPRA,on Sunday said the new products pricing template was applicable to the pump prices at the sales outlets of the Nigerian National Petroleum Corporation.
According to PPPRA, the expected open market price, which is the prevailing open market rate for the product, after taking certain costs into consideration at the new pump price, is N72.28 per litre, while the FG’s gain per litre is N10.72.
The PPPRA price template further put the landing cost of the product at N57.98 per litre; the total margin due middlemen at N14.30; the retailers’ margin at N5 per litre; transporters margin at N3.05 per litre; and dealers’ margin at N1.95 per litre; the bridging fund at N5.85 per litre; marine transport average at N0.15 and administrative charges put at N0.15 per litre.
The release also indicated that the official ex-coastal price is N68.02 per litre; the ex-depot price, which depot owners would sell to marketers, is N68.70 per litre, while the official ex-depot price for collection is N73 per litre.