The Federal Government has finally removed subsidy on Dual Purpose Kerosene (DPK), the product will now sell for N83 per liter instead of the initial regulated pump price of N50 per liter.
This was disclosed by in a product pricing template released in Abuja on Sunday by the Petroleum Products Pricing Regulatory Agency (PPPRA). The PPPRA is a Federal Government agency in charge of fixing and regulating the prices of white products, kerosene and petrol, across the country.
According to the PPPRA product pricing template released over the weekend, the N83 per liter price applies only to the Nigerian National Petroleum Corporation (NNPC). This means that other petrol stations and dealers can sell higher than the stipulated amount.
The agency stated that at the new price of N83 per litre, the Federal Government will be making a gain of N10.72 for every litre, as it puts the Expected Open Market Price, which is the Landing Cost plus Total Margins at N72.28 per litre.
The template also put the landing cost of the product at N57.98 per litre, while the total margin 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 at N0.15.
According to the PPPRA’s template, 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 federal government had last year removed the subsidy on Premium Motor Spirit (PMS) popularly known as petrol, bringing the price of the product to N85/litre.
According to PPPRA, who spoke on behalf of the Federal Government, the product would be sold at N83 per liter by the Nigerian National Petroleum Corporation (NNPC) retail stations and other oil marketers can sell at N83.50 per litre.