Adedapo Adesanya
By Adedapo Adesanya
Following the reactions that greeted its announcement of a hike in the price of premium motor spirit (PMS) otherwise known as petrol, the Petroleum Products Pricing Regulatory Agency (PPPRA) made a u-turn and has denied raising the price of the commodity.
In a statement released on Friday, the pricing regulator claimed the guiding prices it posted on its website was only indicative of current market trends and do not translate to an increase in the pump price of PMS.
The Executive Secretary, Mr Abdulkadir Saidu, said in the statement that “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,” he further said.
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 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,” Mr Saidu added.
He noted that agency was 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,” he said.
“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.”
Earlier, Business Post had seen a now-deleted price template which showed that the price band was fixed between N209.61/litre and N212.61/litre.
