The recent pricing of pump price by the Petroleum Products Pricing Regulatory Agency (PPPRA) Friday stirred a controversy that caused the agency to delete a template on petrol price.
The PPRA, in a statement, stated that the reports in the media were “misconstrued and thus misleading”.
It noted that the guiding prices were indicative of market trends and do not reflect an increase in the pump price of Premium Motor Spirit (PMS).
The hashtag #FuelPriceHike on social media followed the release of a template by the agency indicating an increase of pump price from N162, the current petrol price, to N212.
In making clear its stance, the PPRA, in the statement said that based on the Market-Based Pricing Regime for PMS Regulation 2020 petrol prices “are expected to be determined by market realities in line with the dictates of market forces.”
It stated, “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.”
It added that it would observe market trends daily to “determine guiding prices”.
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“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,” it added.
“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.
“PPPRA pledges to continue to perform its statutory function in ensuring that the downstream remain vibrant as well as support both government and members of the public.”
