PPPRA Executive Secretary Makes U-Turn, Says No Increase In Fuel Price

Barely 24 hours after announcing a new price template of N212.6 per liter petrol price, the Executive Secretary of the Petroleum Products Pricing Regulatory Agency, Abdulkadir Saidu on Friday reversed the price hike decision.

Saidu in a statement personally signed by him said that the price of Premium Motor Spirit popularly called petrol will remain at the current price of N164 per liter.

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The reversal is coming after stakeholders who spoke to THE WHISTLER had condemned the price announcement by the PPPRA Boss.

The Nigerian Union of Journalists, the Independent Petroleum Marketers Association of Nigeria, and other stakeholders such as the Chartered Institute of Finance and Control had expressed disappointment on the sudden announcement of an adjustment in fuel price by the Executive Secretary of the PPPRA

They had slammed the PPPRA Boss for announcing the price adjustments at a time when the Federal Government is still engaging the Nigerian Labour Congress and other critical Stakeholders in the oil industry on the deregulation policy.

While the NUJ had said that the action of Umar showed his level of “insensitivity” to the plights of Nigerians, IPMAN described the announcement as “shocking”

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The PPPRA had said that the retail price of petrol would sell between market band of N209.61 and N212.61.

The Agency, which disclosed this in its monthly template released on Thursday night had stated that landing cost for petrol per liter is N189.61, with the ex-depot price standing at N206.42 per liter.

Shortly after the announcement, the Federal Government said it is not planning to increase the price of petrol in March.

The plan not to hike price of petrol was confirmed by the Nigerian National Petroluem Corporation on Friday.

The decision of the NNPC not to increase price was to allow conclusion of the ongoing engagements with Organized Labour and other stakeholders on an acceptable framework that will not expose the ordinary Nigerian to any hardship.

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But hours after news of the latest upward price adjustment went round, the PPPRA retreated and pulled down the controversial price template from its website.

In its place the agency had published a notice: “Please be informed that published prices are only indicative of current market trends.”

The template was issued at a time the Federal Government was still negotiating with Labour

Findings revealed that the PPPRA Boss did not get approval of President Muhammadu Buhari before making the new pricing template public.

But speaking on the development, Saidu said that the Guiding Prices posted on the PPPRA’s website was only indicative of current market trends and do not translate to any increase in pump price of PMS.

He said, “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.

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“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.”

Saidu said while consultation with relevant stakeholders is ongoing, the PPPRA does not fix or announce prices and therefore there is no price increase.

He added, “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 pledged 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.

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