Skip to main content

Deregulation: PPPRA insists it no longer fixes fuel price

Deregulation: Why FG’ll not hands off downstream oil sector ― PPPRA
A fuel pump (stock photo).

By Michael Eboh

The Petroleum Products Pricing Regulatory Agency (PPPRA), Sunday, insisted that it would continue to regulate the downstream petroleum industry, irrespective of the recent deregulation of the sector, to prevent petroleum products marketers from exploiting consumers and also to enforce the appropriate laws guiding the industry.

The PPPRA also cleared the air on the controversy surrounding the pricing of petroleum products, stating that it no longer fixes the price of Premium Motor Spirit (PMS), also known as petrol, but would constantly, on a monthly basis, develop a guiding price for the commodity, with which it would advise marketers.

In a statement in Abuja, Executive Secretary of the PPPRA, Mr. Saidu Abdulkadir, disclosed that the deregulation of the downstream sector would be dependent on the enforcement of appropriate laws by strong regulatory agencies, hence its continued intervention.

He said, “For the purpose of emphasis, let me reiterate that different sectors of the polity operate under the guidance of national regulators. The Central Bank of Nigeria (CBN) regulates the banks and other financial sectors; Nigerian Communication Commission (NCC) regulates telecommunications; National Insurance Commission (NAICOM) regulates the insurance sector and the same exists for operators in Nigeria’s downstream petroleum sector.

“To this end, it is not out of place for the Agency to provide a guiding price band with the aim to protect consumers against price gouging. It is important to also state that there is nowhere in the world that deregulation means total lack of control, supervision or oversight.

“While the Market-Based Pricing Regime is a policy introduced to free the market of all encumbrances to investment and growth, it should not be misconstrued to mean a total abdication of government’s responsibility to the Sector and citizenry.”

No price-fixing

Abdulkadir maintained that the PPPRA no longer fixes prices but rather provides a guiding price band by monitoring petroleum products prices daily; using the average price of the previous month to determine prices for the following month, for appropriate cost-reflective pricing that ensures reasonable returns to Oil Marketing Companies (OMCs).

“This methodology is in line with international best practices which range from bi-monthly to monthly price reviews. Nigeria adopted the monthly review model considering the average duration for importation of petroleum products into Nigeria from the closest spot market; Northwest Europe (NWE) to West Africa (WAF) is about 30 days. This period encompasses the Import Financing Process to delivery at retail outlets,” he explained.

READ ALSO: You‘re alone, Labour tells PPPRA over full deregulation petrol price

He argued that the new pricing regime would encourage oil marketers to resume supply of PMS, leading to further value creation in the downstream; foster job creation; ensure reasonable returns for investors, create healthy competition among marketers, enhance value for consumers and make funding available for other important infrastructure.

Code of conduct for oil marketers

The PPPRA chief executive, however, explained that although crude oil price and petroleum products prices are positively correlated, the prices of petroleum products do not increase or reduce correspondingly with changes in crude oil price.

He noted that the pump price we expect to see will be a reflection of the international market prices of petroleum products that are also rising.

Abdulkadir further stated that in line with its laws, it had concluded the development of Guidelines for Petroleum Products Commercial Framework and is currently drawing up Code of Conducts for Operators in the new pricing regime.

He also added that the PPPRA is currently finalising the review of cost elements and profit margins on the pricing template for marketers, to reflect the current market-driven pricing regime which was last reviewed in 2016, while ensuring that consumers are not overcharged.

Vanguard Nigeria News

The post Deregulation: PPPRA insists it no longer fixes fuel price appeared first on Vanguard News.


https://ift.tt/3eOdOsQ by David O Royal via Vanguard News Albert Einstein Fools of Fortune

Labels

Labels:

Comments

Post a Comment

Popular posts from this blog

How to jump-start Nigeria economy post-COVID-19 Pandemic

Nwali Tochukwu Watching with consternation the fall out of events, actions, and inactions of our Nigerian leaders on mitigating the negative impact of COVID-19 Pandemic disruptions on our social and economic lives. As a young dynamic business and entrepreneurship writer, and author cum small business owner, what came into my mind as we navigate the storms of COVID-19, was a common English phrase Adages, Proverbs, first recorded in Fuller’s Gnomologia, 1732: ‘A stitch in time saves nine’ which was translated to literally, solve the problems right now! Why procrastinating? If we, as a nation wants to break away from past mistakes, and present mistakes, we should hold the bull by the horn right now. And avoid the roads of political expediency. That is exactly what the stitch in time simply stood for. Promptly address issues posed by Coronavirus. By quickly sewing up of a small hole or tear in a piece of material, so saving the need for more stitching at a later date when the whole ha...
2 comments
Read more

Where is Aguleri Located?

Aguleri is a prominent town often associated with the mighty river called Omabala wgiyflows through it. It is home to a lot of great men and women of Anambra Stare - notably Willie Obiano. History had it that it was the cradle of Igbo people established by Eri, son of Had, son of Jacob (you got to read your Bible babe). Where is Aguleri located? It can be foueat the north eastern part of Nigeria. They share boundaries with Kano, Umueri, Anam and Nando httpss://twitter.com/share https://google.com https://www.alexa.com/siteinfo/google.com https://www.quantcast.com/google.com https://sharedcount.com/?url=https://google.com https://www.similarsites.com/site/google.com https://facebook.com https://www.alexa.com/siteinfo/facebook.com https://www.quantcast.com/facebook.com https://sharedcount.com/?url=https://facebook.com https://www.similarsites.com/site/facebook.com https://youtube.com https://www.alexa.com/siteinfo/youtube.com https://www.quantcast.com/youtube.com ...
Post a Comment
Read more

Media Women Forum begins awareness of mental wellbeing

By Yetunde Arebi Media Women Forum has begun a campaign to create awareness of mental wellbeing. The group organized a Webinar on Saturday  27, 2020 to draw public attention to the need for people especially women to protect their mental wellbeing. The group noted that there is an unpleasant development,  whereby women in their early 40s are dying of heart attack, stroke, and depression. In her opening address Olori  Janet Afolabi, CNN award-winning journalist, Oueen of Apomu Kingdom said different challenges are attacking people mentally. Also read: African Consuls General hold dialogue with Diaspora leaders, U.S. officials “A lot of women worry about their marriages, families, loss of a job, loss of loved ones, domestic violence, sex abuse, and rape. The effects of these unseen, unspoken but piercing emotional pains are creating scars in the minds of women. The scars have sent some women to the grave while some are living  with it.” Olori Janet, therefore, ad...
Post a Comment
Read more