Business

We lack power to announce petrol price, only indicate market trends – PPPRA

Saidu

By Ezurike ugochukwu

Owing to the tension on Friday by the pricing template release by the Petroleum Products Pricing Regulatory Agency(PPPRA),

It has said the aim was “only indicative of current market trends” not fixing or announcement of price.

In a statement signed by Abdulkadir Saidu PPPRA Executive Secretary the release on its website that led to panic buying of petrol across the country on Friday was only her statutory role of monthly release of Guiding Price to reflect current market fundamentals.

Saidu, however stated, “PPPRA does not fix or announce prices and therefore there is no price increase,” adding that “the current PMS price is being maintained while consultations are being concluded”.

Vehicle, tricycles and individual buyers at a petrol station in Lagos on Friday

He restated that publication by some sections of the media on the issue was misleading, “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.

“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 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.

“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.”

The agency however assured that the current petrol stock in the country as of March 11, 2021, is over 35 days stock, as such it’s unnecessary for Nigerians to resort to panic buying.