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HomeTop NewsNNPC, PPPRA deny petrol price hike, insist no increase contemplate for March

NNPC, PPPRA deny petrol price hike, insist no increase contemplate for March

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The Petroleum Products Pricing Regulatory Agency (PPPRA) has clarified issues around the reported hike in the pump price of fuel, saying the template posted on its website was not an attempt to fix price to serve as indicators of the price trend.

In a statement signed by the Executive Secretary, Abdulkadir Saidu, the agency said the template it posted on its website was misconstrued to mean that the pump price has been increased to N209.61 and at an upper retail price of N212.61.

The agency said it does not fix the price of Premium Motor Spirit (PMS) otherwise known as petrol, noting that what it has done was to set an indicative rate on the current price of the commodity in the market.

Late Thursday, the agency had published an announcement on its website that fuel price should retail for N209.6-N212.6 a liter, almost 30 percent higher than current rates.

The publication on the website of the agency came as a shock to many Nigerians who had been assured by the Nigerian National Petroleum Corporation (NNPC) that it will not hike the price of fuel in March.

However, in a quick reaction, the PPPRA said on Friday that “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.” 

It said “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 the pump price of PMS. However, publications by the media to this effect have been misconstrued and thus misleading.

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“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 trend 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.”

On Friday, the NNPC insisted there would be no increase in March, reiterating a statement published at the start of the month.

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