The Petroleum Products Pricing Regulatory Agency (PPPRA) has denied media reports that it has increased the price of Premium Motor Spirit (PMS) otherwise known as petrol from N162 to N212 per litre.
The regulatory agency said the ‘Guiding Prices’ posted on its website Thursday night was only indicative of current market trends which it added does not translate to an increase in the pump price of PMS.
Recall that Nigerians woke up to the news Friday morning that the Federal Government had increased the pump price of fuel from N162 to N212, but the Nigerian National Petroleum Corporation (NNPC) had also denied that it did increase the pump price.
Reacting to the development in a statement, Executive Secretary, PPPRA, Abdulkadir Saidu explained that the introduction of the MarketBased Pricing Regime for PMS Regulation 2020 as gazetted by the Federal Government, prices are expected to be determined by market realities in line with the dictates of market forces.
According to him, one of the conditions for the implementation of the Market-Based Pricing Regime for PMS Regulation 2020 is the monthly release of Guiding Price to reflect current market fundamentals.
The statement reads: “The attention of the Petroleum Products Pricing Regulatory Agency (PPPRA) has been drawn to speculations about the increased pump price of PMS.
“The PPPRA by this release wishes to state clearly that the Guiding Prices posted on our website was only indicative of current market trends and do not translate to any increase in the pump price of PMS. However, publications by the media to this effect have been misconstrued and thus misleading.
“The Agency wishes to remind the general public of the introduction of the MarketBased Pricing Regime for PMS Regulation 2020 as gazetted by the Federal Government. Based on this regulation, prices are expected to be determined by market realities in line with the dictates of market forces.
“One of the conditions for the implementation of the Market-Based Pricing Regime for PMS Regulation 2020 is the monthly release of Guiding Price to reflect current market fundamentals.
“The PPPRA in line with its mandate to maintain constant surveillance overall key indices relevant to pricing policy monitors market trends on a daily basis to determine Guiding Prices.
“The Agency is not unaware of the challenges with the supply of PMS due to some concerns leading NNPC to be the sole importer of PMS. PPPRA is also mindful of the current discussion going on between the government and the Organised Labour on the deregulation policy. While consultation with relevant stakeholders is ongoing, PPPRA does not fix or announce prices and therefore there is no price increase. The current PMS price is being maintained while consultations are being concluded.
“Even though market fundamentals for PMS in the past few months indicated upward price trends, the pump price has remained the same and we are currently monitoring the situation across retail outlets nationwide.
Saidu, however, assured the general public of adequate product supply as the average PMS DaySufficiency as of March 11, 2021, is over 35 days.
“The PPPRA pledges to continue to perform its statutory function in ensuring that the downstream sector remains vibrant as well as support both government and members of the public,” he stated.