The labour unions opposed the PMS price hike which forced the FGN to reduce the PMS prices to N162.44/litre. xThe IMF import parity pricing model governs the pricing of PMS and forms the basis of the FGN PPPRA PMS price template. The import parity PMS price is the Expected Open Market Price (EOMP). Therefore, fuel subsidy is assumed to be the difference between the EOMP and the actual PMS price. The higher the crude oil price, the higher the Cost + Freight cost, the landing cost and the final PMS price.

Source: The Guardian January 26, 2021 04:15 UTC