The Petroleum Products Pricing Regulatory Agency (PPPRA) says Nigerians misunderstood its notice on the pump price of Premium Motor Spirit, popularly known as petrol.
Ngnews247 reports that the PPPRA had announced a new increment on its website which has now been deleted, stating that it was due to the market determinants and importation costs.
PPPRA fixed the lower band of the new fuel price at N209.61 per litre and the upper band at N212.61 per litre.
But the Nigerian National Petrol Corporation (NNPC) countered the announcement, insisting that there is no increase in fuel price in March.
The information caused a stir among many Nigerians who are still battling the crippling effects of the coronavirus pandemic on the economy.
But in a statement on Friday, the PPPRA said its ‘Guiding Prices’ was “only indicative of current market trends and do not translate to an increase in the pump price of PMS.”
The agency maintained that it “does not fix or announce prices”, adding that the nation’s “pump price has remained the same and it is currently monitoring the situation across retail outlets nationwide.”
The statement read: “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 the 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.
“The PPPRA in line with its mandate to maintain constant surveillance overall key indices relevant to pricing policy, monitors market trends on a daily basis to determine Guiding Prices.
“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.
“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.
“PPPRA pledges to continue to perform its statutory function in ensuring that the downstream remain vibrant as well as support both government and members of the public.”