UPDATE: Confusion as PPPRA denies increase in pump price, minister apologises
. Guiding prices template does not translate to increase in pump price, says agency
. It was a mix-up, says Sylva
By Eniola Idris
The Petroleum Products Pricing Regulatory Agency (PPPRA) has disclosed that the guiding prices template earlier released on it’s website did not translate to increase in pump price.
The situation has already elicited concerns among stakeholders who believed a deregulated downstream petroleum market should be well defined by government.
Already, many of the filling stations observed in Lagos and Ogun State by SlyeNews early Friday shut their pumps, hoarding the existing stock, while motorists were engaged in panic buying.
A statement signed by Executive Secretary, Abdulkadir Saidu, and made available to SlyeNews, reads: “The PPPRA by this release wishes to state clearly that the Guiding Prices posted on our website was only indicative of current market trends and do not translate to any increase in pump price of PMS. However, publications by the media to this effect have been misconstrued and thus misleading.
“The Agency wishes to remind the general public of the introduction of the Market-Based Pricing Regime for PMS Regulation 2020 as gazetted by the Federal Government. Based on this regulation, prices are expected to be determined by market realities in line with the dictates of market forces.
“One of the conditions for the implementation of the Market-Based Pricing Regime for PMS Regulation 2020 is the monthly release of Guiding Price to reflect current market fundamentals,” he stated.
Saidu said PPPRA in line with its mandate to maintain constant surveillance over all key indices relevant to pricing policy, monitors market trends on a daily basis to determine guiding prices.
He added that: “The Agency is not unaware of the challenges with the supply of PMS due to some concerns leading NNPC to be the sole importer of PMS. PPPRA is also mindful of the current discussion going on between the government and the Organised Labour on the deregulation policy. While consultation with relevant stakeholders is ongoing, PPPRA does not fix or announce prices and therefore there is no price increase. The current PMS price is being maintained while consultations are being concluded.
“Even though market fundamentals for PMS in the past few months indicated upward price trends, the pump price has remained the same and we are currently monitoring the situation across retail outlets nationwide,” he stated.
While assuring the public of adequate products supply as the average PMS Day-Sufficiency as of March 11, 2021 is over 35 days, the PPPRA pledges to continue to perform its statutory function in ensuring that the downstream sector remains vibrant as well as support both government and members of the public.
Meanwhile, The Minister of State for Petroleum Resources, Mr.Timipreye Sylva has asked Nigerians to disregard the increase, saying it was a mix-up.
The Minister while addressing the media at the ground breaking ceremony for the Rungas composite cylinder manufacturing plant in Alaro City FZE, Epe, tendered the Federal Government’s unreserved apology to Nigerians for the inconvenience the wrong announcement may have caused them.
However, it was observed that the PPPRA had recalled the March guiding prices template earlier released on it’s website.
The agency had in the template projected N212.61 per litre for Premium Motor Spirit (PMS) otherwise known as petrol.
PPPRA fixed the lower band of the new fuel price at N209.61 per litre and upper band at N212.61 per litre.
The price was calculated on the approved average importer & exporter (I&E) Naira exchange rate per dollar of N403.80.
While announcing the pricing template for the month of March, PPPRA said the price is based on the average costs of imported petroleum products.
It showed that the average price per ton of the commodity is about $561.96, or N169.22 per litre, while the average freight rate cost $21.63 per ton, or N6.51 per litre. The ex-coastal price is N175.73 per litre.
For component charges, the average littering expenses cost N4.81 per litre; Nigerian Ports Authority (NPA) charge N2.49 per litre; NIMASA charge N0.23 per litre.
Jetty Through Put charge is N1.61 per litre; Storage charge is N2.58 per litre, and average finance is N2.17 per litre, translating to an expected landing cost per litre of N189.61.
There is the wholesale margin of N4.03 per litre; administration charge of N1.23 per litre; transporters’ allowance (NTA) of N3.89 per litre; Bridging Fund cost of N7.51 per litre and Marine transport average (MTA) of N0.15 per litre.
