The volume of petrol sold by the Petroleum Products Marketing Company, a subsidiary of the Nigerian National Petroleum Corporation, dropped in the first two consecutive months of price hike, latest data from the NNPC have shown.
The PPMC saw its petrol sales revenue fall in July and August despite the increase in the pump price of the product.
The company is principally engaged in the supply and marketing of refined petroleum products to the marketers/retailers on behalf of the NNPC.
Sales of Premium Motor Spirit, also known as petrol, had plunged to record low in April amid the lockdown imposed by the Federal Government to contain the spread of COVID-19 pandemic in the country.
Petrol sales by PPMC fell to 941.22 million litres in April from 1.65 billion litres in March, 1.73 billion litres in February and 1.19 billion litres in January, according to the NNPC data.
But petrol sales started to recover in June following the easing of lockdown, rising from 950.67 million litres in May to 1.34 billion litres.
The recovery was, however, shortlived as PPMC’s petrol sales declined to 1.02 billion litres in July and 946.47 million litres in August.
Nigerians saw increases in the pump prices of petrol in July and August, from N121.50–N123.50 per litre in June to N140.80 – N143.80 in July, and N148 – N150 in August.
The NNPC, in its latest monthly report, said, “A total of 950.66 million litres of white products were sold and distributed by PPMC in the month of August 2020, compared with 1,036.16 million litres in the month of July 2020.
“This comprised 946.47 million litres of PMS, 2.72 million litres of AGO (Automotive Gas Oil) and 1.47 million litres of DPK (Dual Purpose Kerosene). There was no sale of special product in the month.”
It said a total sum of N114.70bn was made on the sale of white products by the PPMC in August, down from N121.69bn in July.
Revenue from petrol sales dropped to N114.02bn in August from N119.56bn in July and N133.23bn in June, according to the NNPC.
The Federal Government removed petrol subsidy in March this year after reducing the pump price of petrol to N125 per litre from N145 on the back of the sharp drop in crude oil prices.
The Petroleum Products Pricing Regulatory Agency also announced then what it called a market-based pricing regime for PMS, saying it would advise the NNPC and others on the monthly guiding retail price at which the product should be sold across the country.
The PPPRA issued guiding prices for three months but failed to do so in August and September, leaving marketers to adjust their pump prices to reflect the increase of the ex-depot price by the PPMC.
On September 8, the PPPRA said it would no longer be releasing guiding price bands for PMS, adding that market forces would determine the price of the product.
Petrol price band increased to N158-N162 in September and N165-N170 in November.