PPPRA denies fuel price hike as NNPC insists no increase in ex-depot price in March
As Nigerians continue to lament the pains and hardship due to the recent hike in petroleum products, the Petroleum Products Pricing Regulatory Agency (PPPRA) has denied reports of increasing the pump price of fuel in Nigeria.
On Friday, Nigerians woke up to a viral report on social media that the price of fuel had been increased to 212 naira per litre. The report was based on a pricing scheme published by the agency on its official website. The scheme has since been deleted.
In a statement on Friday afternoon, signed by an Executive Secretary of the agency, Abdulkadir Saidu, PPPRA disclosed that it was not saddled with the responsibility of announcing or fixing the price of Fuel.
“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 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 Market-Based 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 over all 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.”
“While assuring the public of adequate products supply as the average PMS Day-Sufficiency 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.”
Meanwhile, the Nigerian National Petroleum Corporation (NNPC) has insisted that the ex-depot price of Premium Motor Spirit (PMS), popularly known as Petrol, will not be increased in March.
This was disclosed by the corporation via its Twitter handle on Friday.
Contrary to the PPRA template, which was released earlier on Friday, NNPC assured Nigerians that there wont be any increase in the price of petrol in March.
The ex-depot price is the price at which the product is sold by the NNPC to marketers at the depots.
According to PPPRA template, petrol is expected to sell at a lower retail price of N209.61 and at an upper retail price of N212.61. Nigerian marketers usually use the upper band for pump price.
The expected ex-depot price, as seen in the template, is N206.42, while the landing cost is N189.61.
With ex-depot price standing at N206.42 per litre, the March template shows that the landing cost for petrol per litre is N189.61
