The Petroleum Products Pricing Regulatory Agency (PPPRA) and key oil marketers in Nigeria’s downstream petroleum sector have said that the current fundamentals guiding the importation and sale of petrol in the country were still favourable for petrol to be sold within the government-approved pump prices of N135 to N145 per litre.
The PPPRA and marketers which include the Nigerian National Petroleum Corporation (NNPC), Major Oil Marketers Association of Nigeria (MOMAN), and Depot and Petroleum Products Marketers Association (DAPPMA) stated this after an emergency meeting with the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu in Abuja.
The meeting, according to a statement from PPPRA, was convened by Kachikwu as a response to recent news of a possible increase in the pump price of Premium Motor Spirit (PMS).
It was attended by the Group Managing Director of the NNPC, Dr. Maikanti Baru, the Acting Executive Secretary of PPPRA, Mrs. Sotonye Iyoyo, the Acting Executive Secretary of Petroleum Equalisation Fund (PEF), Ahmed Bobboi, as well as the Executive Secretary of MOMAN, Obafemi Olawore, and the Executive Secretary of DAPPMA, Olufemi Adewole.
The statement was however signed by the trio of Iyoyo, Olawore and Adewole, and it stated: “The meeting reviewed the state of the downstream sub-sector, especially as it relates to products supply, distribution, pricing and FOREX sourcing. The meeting also reviewed recent concerns expressed at certain quarters, on the sustainability of the current PMS price band.”
“After exhaustive deliberations, stakeholders present were in the affirmative that the speculations of an imminent upward price review of PMS was unfounded. This position is premised upon the fact that the current market fundamentals, as captured on the PPPRA pricing template for PMS, confirmed that the market is operating within the existing price band of N135-N145 per litre.
“The claim is therefore both unfounded and deceptive, as there is no basis for pricing speculations as being circulated within the last few days,” it added.
The PPPRA from this, assured that the country will continue to have an uninterrupted supply and distribution of petroleum products.
It said the promise was in line with its overall goal of facilitating a vibrant and robust downstream sector, and that Kachikwu has also assured of the federal government’s continued commitment to the welfare and well-being of all Nigerians.
Former Group Managing Directors of the NNPC had last Saturday stated that the that the price cap of N145/litre on petrol was not consistent with the liberalisation policy of the government especially with the foreign exchange rate and other price determining components such as crude cost, Nigerian Ports Authority (NPA) charges, remaining uncapped. They thus suggested that the government’s cap on pump price be taken off to allow for market parity.