By Etuka Sunday
Oil Marketers in the country have refused to comply with the new petroleum price regime announced by the Federal Government last week.
A check in Abuja revealed that most of the Filling Stations are selling the product above N40 per litre, against the N125 per litre directed by the federal government.
Recall, in line with Government’s commitment to the welfare and common good of the populace, NNPC was directed to review downward its Ex-Coastal price to reflect the current low oil price for the benefit of Nigerians.
In exercising one of its key statutory mandates to determine the pricing policy of petroleum products as enshrined in the Petroleum Products Princing Regulatory Agency (PPPRA) Act No.8 of May 2003, the Agency announced a new price regime of Premium Motor Spirit (PMS) and other Petroleum products as approved by the Government.
It said, consequent on the new NNPC Ex-Coastal price and taking into consideration all existing approved margins on the PPPRA pricing template, the new pump price of PMS is N125.00 per litre, effective 19th March, 2020. This new price will guide PMS pricing in Nigeria for the rest of the month of March, 2020.
“Going forward, PPPRA will continue to monitor trends in market fundamentals and announce a monthly Guiding/Expected Open Market price at the beginning of every month, effective 1st April, 2020.
“It is expected that the new price regime will emplace a more transparent pricing model, stimulate investment growth in the downstream sector and encourage resumption of products importation by Oil Marketing Companies (OMCs), translating to more job creation as many depots and facilities that are presently dormant will now become active,” PPPRA said.
A statement by the Executive Secretary, PPPRA, Abdulkadir U. Saidu said, the directive of Government to the NNPC to reduce the Ex-Coastal price of PMS, despite the fact that the current stock of product was imported during the months of January and February, 2020 is highly commendable, although this action is not without costs to the Corporation.
“We believe that the recent efforts by the Government to develop an alternative Fuels market will come to fruition in the medium term while various initiatives are being undertaken to deepen the utilization of LPG/CNG as autogas in Nigeria.
“The PPPRA wishes to assure all Nigerians of Government’s dedication to building a more vibrant and sustainable downstream sector,” the ES said.