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How NNPC Saved Nigerians From Incessant Anguish

By Adewole Kehinde

We’re not in an information age anymore. We’re in the information management age – Chris Hardwick

Nigerians woke up last week to the news that the Pump Price of Petrol is now N212.61k.

Almost all the media houses in Nigeria published the news based on Petroleum Products Pricing Regulatory Agency publication of monthly template.

It will be recalled that Nigerian National Petroleum Corporation through its Group General Manager, Group Public Affairs Division of the Corporation, Dr Kennie Obateru have said that that it has not increased the Ex-depot price of Premium Motor Spirit (PMS) also known as Petrol.

So how come marketers increased the price of Premium Motor Spirit to N212.61k? The answer will be explained below.

Crude oil revenue is dependent on the vagaries of the international price fluctuation. There is no policy that stipulates how to cushion or regulate domestic demand and supply of petroleum products.

There is no policy that sets a minimum target for the refineries.

There is no policy on the use of alternative and cleaner sources of energy.

There is no policy on minimum environmental quality standards including pollution control.

The Petroleum Products Pricing Regulatory Agency, PPPRA, had declared that its publication of monthly template, does not amount to increasing the price of petroleum products, as such increase is supposed to be determined by market forces, under the current deregulation.

It will be recalled that the Executive Secretary, PPPRA, Abdulkadir Saidu has said that the Guiding Prices posted on its website was only indicative of current market trends and do not translate to an increase in the pump price of PMS.

However, the PPPRA should have emulated the NNPC by issuing a press release to make clarification instead of blaming the media for misconstruction and thus misleading of the information on its website.

Although, PPPRA later reminded the general public of the introduction of the Market-Based Pricing Regime for PMS Regulation 2020 as gazetted by the Federal Government, this should have come before the publication on its website.

It is understood that based on this regulation, prices are expected to be determined by market realities in line with the dictates of market forces.

I agreed with PPPRA that 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, but it should be done probably by informing the media and not forgetting the social media where news spread like wide fire!

The PPPRA should work closely with the NNPC especially on decisions that will affect the masses such as PMS Pricing.

Also the current discussion between the government and the organised Labour on the deregulation policy should be intensified while consultation with relevant stakeholders should continue.

The marketers should also be aware that PPPRA does not fix or announce prices.

I must commend the Nigerian National Petroleum Corporation for quickly dispelling the rumour of the hike in the price of fuel.

Its explanation that ex-deport price is the price at which oil marketers buy products at the depots, the price is what determines the price at which petrol stations will sell to motorists came as a relieve to Nigerians.

I must commend NNPC for standing by its statement that was issued on March 1 that the Corporation is not increasing the Ex-depot price in the month of March and that is what it is!

It will be recalled that NNPC have said severally that they have sufficient of product in the country and there is really no need for the public to panic.

There is no need for panicking but the Department of Petroleum Resources must monitor the filling stations as majorities are still selling at N212 despite the information that there is no hike in the pump price of fuel.

I also urge Nigerians and motorists not to engage in panic buying of the products as the NNPC has assured that they have no plans to increase its ex-depot price.

Adewole Kehinde is the Publisher of Swift Reporters and can be reached via 08166240846, 08123608662

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