The Petroleum Products Pricing Regulatory Agency (PPPRA) on Friday said media reports about the increase in the pump price of Premium Motor Spirit, popularly known as petrol, were misleading.
The PPPRA, an NNPC subsidiary that regulates the price of petroleum products, had posted what it called ‘Guiding Prices’ on its website that put the price of petrol at N212, up from the current rate of N162.
The information caused a stir among many Nigerians who are still battling the crippling effects of the coronavirus pandemic on the economy.
But the PPPRA said its ‘Guiding Prices’ was “only indicative of current market trends and do not translate to any increase in the pump price of PMS.”
The Federal Government last year announced that the price of petrol will now be determined by market forces as it attempts to cut back on subsidy payments.
The product’s price has recently been on the rise, at some point exceeding $70 per barrel.
But the PPPRA, which maintained that it “does not fix or announce prices” said the nation’s “pump price has remained the same and we are currently monitoring the situation across retail outlets nationwide.”
Parent agency, the NNPC, had earlier said there will be no increase in the pump price in March.
Read the PPPRA’s full statement:
“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 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 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.
“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.
“PPPRA pledges to continue to perform its statutory function in ensuring that the downstream remain vibrant as well as support both government and members of the public.”