PPPRA Denies Fuel Increase, Says News Report Misleading

15 Mar 2021

The Petroleum Products Pricing Regulatory Agency (PPPRA), on Friday, denied that it has increased fuel price from N162 to N212 per litre, as the new retail price.

The agency described the news as mere speculations stressing that the initial price posted on its website was, “only indicative of current market trends,” thus the news report was reportedly “misconstrued and misleading.”

In a statement signed by Abdulkadir Saidu, the PPPRA Executive Secretary, the agency does not determine the market prices of the PMS but its solely determined by the market forces through the Market Based Pricing Regime for PMS Regulation 2020.

One of the conditions for the implementation of the new pricing regime for petrol is the monthly release of the guiding price to reflect current market fundamentals.

It could be recalled that due to the forex challenges, otherwise dollar scarcity which prevented oil marketers from importing petrol into the country, only the Nigerian National Petroleum Corporation (NNPC) currently imports fuel into Nigeria for local consumption.

The statement reads in part, “The attention of the 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 an 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.”

It added that PPPRA “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.”

Though it acknowledged the gradual increase in petrol price in the past few months, however, the agency noted that pump price has remained the same and it is currently monitoring the situation across retail outlets nationwide.

While assuring the public of adequate products supply, the agency restated its commitment to performing its statutory function by ensuring easy access to the product.

Source : Tribune Online