The Executive Secretary of the Petroleum Products Pricing Regulatory Agency (PPPRA), Mr. Saidu Abdulkadir on Tuesday clarified that the monthly petrol pump price advisory to marketers would no longer be given as the sector is now fully deregulated.
Abdulkadir said marketers are responsible for the pump price of the product following Federal Government’s decision to end subsidy on premium motor spirit.
“If we give you the price band for this month, it is like price-fixing”, he added.
Abdulkadir who spoke through, the General Manager, Administration and Human Resources, Mr Victor Shidok at a press briefing in Abuja explained that the price of petrol would now be determined like any other petroleum product such as diesel and kerosene.
Petroleum marketers had last week adjusted the pump price of petrol from N148 per litre to N160 per litre following a memo from the Pipelines and Products Marketing Company (PPMC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC) that raised ex-depot price to N151.56.
Contrary to what the public have been fed on the deregulation of marketing of petrol, the PPPRA noted there was no relationship between the prices of crude oil in the international market and the pump price of petroleum products.
Asked why the prices of petrol should be on the increase in the last three months when the prices of crude oil have not exceeded $45 per barrel, he said: “There is no direct relationship between the prices of crude oil and its products. So many factors play a role.”
It, however, failed to say how the PPMC arrived at the ex-depot price of N151.56 per litre of petrol.
Abdulkadir assured Nigerians that the agency would monitor the marketers to check profiteering.
According to him, “The PPPRA as a regulator will continue the role of a watchdog in this deregulation regime. We will continue to maintain our role as a regulator and ensure that Nigerians are not short changed in any way in this process.
“You know how things are globally with the impact of Covid-19 to the global oil market. Accessing forex remains a challenge for marketers.
“We are hopeful that in a few months to come, Nigerians will understand what government is doing to stabilise the downstream sector”, he said.
Speaking at a retreat for ministers Monday in Abuja President Muhammadu Buhari said that the government would not go back on subsidy removal saying that his administration will no longer borrow money to pay subsidy.