The Integrity Youth Alliance has berated a so-called chieftain of the Peoples Democratic Party (PDP), Adetokunbo Pearse, over his ignorant statement that “NNPC MD, Kyari, Should Be Investigated Over Petrol Landing Cost.”
Reacting to Pearse’s statement during an interview on Channels TV on Monday, the Integrity Youth Alliance, in a joint statement signed by the National Publicity Secretary, Danjuma Lamido, and Patron, Comrade Adewole Kehinde, in Abuja, said that the price of PMS was determined by market forces in line with the realities of a deregulated market.
According to the statement, the new price is not unconnected with the recent increase in crude oil prices on the international market.
“We wish to state that the price of premium motor spirit, also known as petrol, in a country is determined by several factors. These factors can vary depending on the country’s specific circumstances, but here are some common determinants:
1. Crude Oil Prices: The cost of crude oil is one of the major factors influencing petrol prices. When crude oil prices rise in the global market, it tends to push up the price of petrol as well.
2. Refining Costs: The refining process involves converting crude oil into various petroleum products, including petrol. Refining costs, such as maintenance and operational expenses, affect the final price of petrol.
3. Taxes and Duties: Governments often impose taxes and duties on petroleum products, including petrol. These taxes can significantly impact the final price that consumers pay at the pump.
4. Distribution and Transportation: The transportation and distribution costs involved in delivering petrol from refineries to filling stations can influence the price. Factors like distance, infrastructure, and logistics can affect these costs.
5. Exchange Rates: Countries that import crude oil or petroleum products like petrol may also be affected by exchange rates. Fluctuations in currency values can impact import costs and, consequently, the price of petrol.
6. Supply and Demand: The market forces of supply and demand play a significant role in determining petrol prices. If there is an imbalance between supply and demand, such as during times of increased consumption or disruptions in production, prices can fluctuate accordingly.
Recall that the Authority Chief Executive (ACE), Engr. Farouk Ahmed, recently stressed that under the liberalized market, market forces are now allowed to dictate prices.
Engr. Farouk Ahmed reiterated that “We put the regulation in place, we make sure quality control is complied with, we make sure the product is there, and we give a license to a prospective importer.
“The market is now open for everybody that wants to import, as long as they meet all the requirements. So, it is not about the NNPC alone.
“For everybody in the sector, we make sure we guide their operations, whether at the depot or wherever the product is, but we will not put a cap on saying this is what the price must be. As far as we are concerned in the NMDPRA, this is not like before when the PPPRA fixed the price. In a deregulated market, it is the market force that dictates the price.”
“On a final note, we wish to state that Mallam Mele Kyari, the Group Chief Executive Officer of the Nigerian National Petroleum Company (NNPC) Limited, is one of the most transparent GCEOs the organization has had. Since assuming office in July 2019, Kyari has consistently emphasized transparency, accountability, and integrity in the operations of the NNPC.
“It is our hope that with the above explanation, people like Adetokunbo Pearse and his co-critics are more informed now, the statement concluded.
