News
The Petroleum Products
Pricing Regulatory Agency (PPPRA) has debunked increase in the pump price of
Premium Motor Spirit (PMS) otherwise known as petrol following speculations
about the increased pump price of PMS during the week.
PPPRA in a statement said
that the Guiding Prices posted on its website was only indicative of current
market trends and do not translate to any increase in 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 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. 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” the Agency said.
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