The Petroleum Products Pricing Regulatory Agency (PPPRA) has distanced itself from media reports and speculations about an official increase in the pump price of PMS (petrol).
According to a release signed by Abdulkadir Saidu, the Executive Secretary of PPPRA, the Agency clarified that the Guiding Prices posted on its website, which is the source of the ongoing misconception and controversy, was only indicative of current market trends and do not translate to any increase in pump price of PMS.
The Agency therefore referred the general public to the introduction of the Market-Based Pricing Regime for PMS Regulation 2020 as gazetted by the Federal Government adding that 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 release said.
The PPPRA noted that in line with its mandate to maintain constant surveillance over all key indices relevant to pricing policy, it monitors market trends on a daily basis to determine Guiding Prices.
The Agency maintained that it 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 also stated that it is 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 maintained that it 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,” it stated.
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.