Federal Government finally approves N86.50 as price of petrol from January 1

The Federal Government has finally approved N86.50 per litre as the new price of Premium Motor Spirit (PMS), known as petrol.
This is according to a statement by the Petroleum Products Pricing Regulatory Agency (PPPRA), issued late Tuesday and signed by the PPPRA Executive Secretary, Farouk Ahmed.
The statement explained that the new price regime is in line with the prevailing market trend.
“The Petroleum Products Pricing Regulatory Agency (PPPRA), hereby announces the implementation of the revised components of the Petroleum Pricing Template for Premium Motor Spirit (PMS) and Household Kerosene (NHK).
“This follows the approval of the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, for the implementation of the revised template.
“Accordingly, the Ex-depot price of PMS shall be N77.00 per litre, while the pump price shall be N86.50 per litre in line with the prevailing market trend. This new price regime is with effect from 1st January 2016.
“All Marketers are hereby advised to adhere strictly to the PPPRA ex-depot and pump prices, as PPPRA in conjunction with relevant government agencies shall enforce compliance,” the statement stressed.
There had been speculation that the price would be reduced to N85 per litre from the pump price of N87 per litre based on some pronouncements reportedly made by Dr. Kachiku.