- Regulatory agency, the PPPRA, says the reduction in the price of crude oil in the international market has led to the price of petrol falling below the government approved pump price of N145/litre, Leadership reports
- The PPPRA notes that it expects the Nigerian National Petroleum Corporation (NNPC) to start recording over-recovery instead of the under-recovery as has been posting if the trend continues
- The agency expresses confidence the situation would enable other marketers commence importation of petrol into the country
Nigerians may pay less for premium motor spirit (PMS) also known as petrol, with the recent plunge in the price of crude oil in the international market, the Petroleum Products Pricing Regulatory Agency (PPPRA) has stated.
The general manager, corporate services department of the agency, Apollo Kimchi, in a statement on Monday, January 7, said the reduction in the price of crude oil has led to the price of petrol falling below the government approved pump price of N145/litre, Leadership reports.
The agency noted that it expects the Nigerian National Petroleum Corporation (NNPC) to start recording over-recovery instead of the under-recovery as has been posting if the trend continues.
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The PPPRA expressed the confidence that the situation would enable other marketers commence importation of PMS (Petrol).
“With the recent plunge in the price of crude oil in the international market, the agency has observed a downward trend in the expected open market price of PMS, below the government approved pump price of N145/litre.
“It is expected that over-recovery could be witnessed and if this trend continues, thus will enable other marketers commence importation of PMS (Petrol),” the agency said.
The PPRA dismissed allegations the NNPC has taken over one of its responsibilities of regulating the price of petroleum products in the downstream sector. It also faulted claims that petrol subsidy has hit N2.43billion
“PPPRA as an agency has been dispensing its obligation in line with the mandates as contained in the Act that establishes it and is not aware that another agency has taken over its duties, the statement from the agency read in party," it said.
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“The PPPRA website is regularly updated with relevant industry data except for occasional technical glitches affecting upload of the data.
“The agency administered the Price Modulation Mechanism (PMM) for the period of January to May, 2016. Presently, the scheme managed by PPPRA since May 2016 is the Appropriate Pricing Framework (APF).
“Under this scheme, the agency regulates petroleum products supply and distribution through issuance of Quantity Notification (QN) and LAYCAN to NNPC and other marketing companies (OMCs). It also monitors discharges at various facilities nationwide.”
Meanwhile, the minister of state for petroleum resources, Ibe Kachikwu, has said that Nigeria will continue to struggle and face challenges in terms of ensuring stable fuel supply until the downstream sector of the petroleum industry is liberalised and subsidy of petroleum products removed.
Kachikwu said that the country needed to find a way to find a way to provide adequate petroleum products to sufficiently meet the needs of its citizens and at the same time to be able to free the sector for growth.
Speaking at the ministry’s presentation of three years key achievements and award to staff in Abuja, the minister said the liberalisation of the downstream sector is going to address the problem of inadequate fuel supply.
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