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PPPRA slams reports over removal of fuel price-cap by marketers

 

The Petroleum Products Pricing Regulatory Agency (PPPRA) on Sunday, June 7, slammed reports over the removal of a fuel price-cap; an action that would have given oil marketers the freedom to determine fuel pump price.

This was after reports emerged last week that fuel price cap had been removed.

However, the PPPRA said the government had not conferred on marketers the power to fix prices for petrol as they deem fit.

This was contained in a statement issued by the PPPRA’s Executive Secretary Abdulkadir Saidu.

Saidu said the agency will monitor market trends and advise the NNPC and Oil Marketing Companies on the monthly market-based guiding price; which shall include the indicative retail price at which the product shall be sold across the country.

“For the avoidance of doubt, it is instructive to state that no private individual or group has the mandate to fix the prices of petroleum products.

“However the statutory regulatory body is saddled with the responsibility of advising guiding prices.

“Suffice to say that in a deregulated market, the role of a regulator in monitoring and regulating activities in the sector cannot be over-emphasized”, the PPPRA executive secretary said.

He said: “It has come to the PPPRA’s attention that several publications in the print and electronic media have reported that the agency has removed the price cap on Premium Motor Spirit (PMS); giving marketers the freedom to fix the price of the commodity and sell above the stipulated price.

“It would be recalled that the removal of Premium Motor Spirit (PMS) price cap and implementation of a market-based pricing regime was first announced by the Honorable Minister of State for Petroleum Resources, Chief Timipre Sylva, in March 2020.

“This was followed by PPPRA’s publication announcing the Regulation on the market-based pricing regime; thus creating a legal framework for the policy.

“The published Regulation does NOT confer on marketers the power to fix prices for the product as they deem fit; but rather guiding prices would be advised by the PPPRA according to market realities.

“The Agency shall monitor market trends and advise the NNPC and Oil Marketing Companies on the monthly market-based guiding price; which shall include the indicative retail price at which the product shall be sold across the country.”

The federal government had on June 1 announced a new pump price band for Premium Motor Spirit (petrol) from N125.50/N123.50 per litre to N121.50/N123.50.

Petroleum products marketers in the country promised to comply with the latest downstream pricing regime.

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