The Federal Government on Friday apologized to Nigerians over the confusion over the release of Petroleum Products Pricing Regulatory Agency (PPPRA) latest N212.61 petrol price.
The release of such PPPRA template always heralds the kickoff of a new price regime.
Minister of State for Petroleum Resources, Mr Timipreye Sylva, said after the groundbreaking ceremony for the Rungas composite cylinder manufacturing plant in Alaro City Free Zone, Epe, that Nigerians should disregard the published increase, explaining that it was a mix-up.
Meanwhile, the PPPRA has declared that its publication of monthly template does not amount to increasing the price of petroleum products, as such increases are supposed to be determined by market forces, under the current deregulation of the sector.
Chief Sylva told journalists that there will be no increment in the pump price of Premium Motor Spirit (PMS) until conclusion of consultation with Organised Labour.
According to the Minister, “irrespective of the source of that information, I want to assure you that it is completely untrue. Neither Mr President who is the Minister of Petroleum Resources nor myself who deputise for him as Minister of State has approved that petrol price should be increased by one naira. I therefore urge you to disregard this misleading information.”
He explained that for the past few months, the federal government has been in consultation with organised labour to find the least painful option to respond to the global rise of crude price which has inevitably led to increase in petrol prices.
Sylva noted that it was unthinkable that government would unilaterally abandon these discussions and act in the manner suggested by the information under reference.
In a statement on Friday, Executive Secretary, PPPRA, Abdulkadir Saidu, stated: “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 an 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. 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.”
He added: “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.”
