Oil & Gas

Deregulation will force down PMS price- PPPRA

Published

on

Deregulation will force down PMS price- PPPRA

The Petroleum Products Pricing Regulatory Agency (PPPRA) says full deregulation of the downstream oil and gas sector will help force down price of Premium Motor Spirit (PMS) also known as petrol.

The agency made this known in a statement signed by its Executive Secretary, Mr Saidu Abdulkadir in Abuja, on Sunday.

The News Agency of Nigeria recalls that the PPPRA on July 1, announced a pump price band of N140.80k and N143.80k per liter for PMS.

This was an increase by N20.30 from the June price of N121.50 per litre. .

He attributed the rise in the pump price of the commodity to cost of petroleum products in the international market and the cost of acquiring foreign exchange (FOREX).

He explained that the newly-adopted market-based pricing system was in view of the need to promote the growth of the Nigerian petroleum industry and the economy in general.

He said that oil marketing companies had resumed fuel importation and had directly imported a total of 536,000 metric tonnes of PMS into the country.

According to him, additional investment in local refining, will engender competition and force down prices of products.

“The agency is cognizant of the public outcry trailing the recent surge in petroleum products prices.

“However, this decision is a reflection of the new market-based pricing system, which does not seek to harm consumers but foster growth in the sector and prevent wastages resulting from subsidy.

“The recent upward movement in pump price is becoming a bone of contention because of the fragile state of the economy.

“However, deregulation of the sector is in the country’s best interest because competition has a way of forcing down prices and ensuring that companies place a tight rein on production cost such that wastes that could be passed on to consumers in form of high prices are eliminated.

“The trillions of naira that would have been spent subsidising PMS could be injected into other key sectors such as agriculture, education, health, power and infrastructure.

“There will also be focus on the provision of social safety nets for the poor who bear the brunt of the COVID-19 pandemic,” he said.

Abdulkadir said that under the market-based pricing regime, products prices would be determined by market forces.

He said that this explained the recent downward and upward movements in the guiding pump price band of PMS, which reflected market realities.

Edited By: Grace Yussuf (NAN)

Short Link: https://wp.me/pcj2iU-3oRl

Edith Ike-eboh

Edith Ike-eboh: NNN is a Nigerian online news portal that publishes breaking news in Nigeria, and across the world. We are honest, fair, accurate, thorough and courageous in gathering, reporting and interpreting news in the best interest of the public, because truth is the cornerstone of journalism and we strive diligently to ascertain the truth in every news report. Contact: editor @ nnn.ng. Disclaimer.

General Abdulsalami Dismisses News Linking Him To Purported Arrested Helicopter Education board trains 600 Ekiti teachers FRSC solicits motorists’ support to minimise crashes Rugby Africa Women’s Sevens Solidarity Camp Tunis – Final report of the two-day tournament Neymar extends PSG deal until 2025 Ogun Govt., Private Firms Empower 100 Youths Coronavirus – Nigeria: COVID-19 case update (May 8, 2021) Okowa mourns ex-minister Aisha Alhassan Ogun Govt. Re-Affirms Commitment To Boost Agric Sector UNIBEN warns admission seekers against racketeers Video press release: Rugby Africa 7-a-side solidarity camp – Day 2 “I believe in united Nigeria, not secession” — Umahi Walscheid takes the 8th place of the Qhubeka ASSOS team during the first stage of the Giro d’Italia US, foundation empower school girls with technological skills Gunmen attack police stations in Rivers kill 7 officers Police arrest 8 suspected kidnappers in Osun INEC engages stakeholders on polling points’ conversion in Oyo Opening remarks by the WHO DG at African emergency meeting on the COVID-19 situation Coronavirus – Zimbabwe: COVID-19 update (May 7, 2021) Ramadan: RMAFC Chairman Mbam urges Nigerians to be tolerant, brothers’ keepers B-roll: African rugby teams meet to prepare for the Olympics and Olympic draft – Day 1 Troops foil kidnap attempt, kill 1 bandit in Kaduna D’banj leads Nigeria to Motorsport Championships Super league – FIFA chief Infantino: “We need to face the problems in football together” Forum tasks FG on MSMEs growth Video press release: Rugby Africa Sevens Solidarity Camp: All matches will be broadcast live Saturday and Sunday on Rugby Africa’s Facebook page and Rugby Africa’s YouTube channel APC will take over Rivers Govt House in 2023- State Chairman Coronavirus – Nigeria: COVID-19 case update (May 7, 2021) FRSC enjoins passengers to caution reckless drivers Coronavirus – Daily update of the state of COVID-19 statistics in Zambia (May 7, 2021) Atiku mourns ex-Minister of Women Affairs, Alhassan Bird flu: Bauchi govt. kills about 27,000 birds to curtail spread Heirs Oil & Gas announces the appointments of its CEO and Board of Directors NCDC records 39 new infections, zero death Victor Campenaerts warming up for the Giro d’Italia time trial on Zwift Abuja residents count losses as FCDA demolishes illegal structures Rugby Africa Sevens Solidarity Camp: All matches will be broadcast live on Saturday and Sunday on Rugby Africa’s Facebook page and Rugby Africa’s YouTube channel Adimula Commissions PTI Skill Development Academy Coronavirus – Rwanda: COVID-19 update (May 6, 2021) JUSUN, PASAN strike to end soon – FG Coronavirus – Eswatini: COVID-19 daily update (May 6, 2021) Jagun emerges new president of computer professionals council Coronavirus – Eritrea: Ministry of Health announcement (May 6, 2021) Lagos to connect 100 schools to internet in May – Sanwo-Olu #EndSARS: Insurance companies pay N4bn claims – NIA NCDC confirms 28 new COVID-19 infections in Nigeria Coronavirus – Daily update on the status of COVID-19 statistics in Zambia (May 6, 2021) Manchester United cruise into Europa League final, Arsenal slump Mining Indaba expands advisory board for 2022 Kogi Gov., Bello commiserates with Pastor Adeboye over son’s demise