FG Denies Plan To Increase Price Of Petrol

Some of the ex NNPC GMDs during their meeting with the current GMD, Maikanti Baru
Some of the ex-GMDs of NNPC during their meeting with the current GMD, Maikanti Baru

The Nigerian government through the Petroleum Products Pricing Regulatory Agency, PPPRA, has said it will not accept the recommendation of the forum of former Group Managing Directors of the Nigerian National Petroleum Corporation, NNPC, to raise the price of petrol from N145.

The forum of former GMDs had on Sunday called for the price increase by calling for a removal of price cap in the pricing template. The former GMDs had in a 12-point communiqué at the end their meeting with the incumbent GMD of the NNPC, Maikanti Baru, said the price cap of N145 per litre of petrol was “not congruent with the liberalization policy.”

The removal of the cap under a liberalised market environment would allow marketers of petroleum products to sell products at any price to enable them recover cost.

The Forum said the current ceiling price of N145 per litre did not factor the current foreign exchange, FOREX, rate and other price components of the pricing template, like crude oil cost and Nigerian Ports Authority, NPA, charges, which remain uncapped

A removal of the price cap would mean that marketers would be free to sell petrol at their desired price, based on several factors such as the exchange rate and international crude price.

PREMIUM TIMES reported the acting Executive Secretary of PPPRA, Sotonye Iyoyo, as saying the proposal was the personal opinion of the former state oil chiefs.



    “If it was a recommendation, that is what it is – a personal opinion. I’m not aware government is planning any fuel price increase. We are in a liberalised market already,” she stated.

    The spokesperson of the NNPC, Garba Mohammed, also described the advice as an “opinion.”

    “The forum was expressing its opinion, which it is entitled to,” Mohammed said.

    “NNPC is a player in the petroleum industry and has a right to have its views about the industry. Nobody is bound by the opinion.”

    In the communiqué, the forum also asked the federal government to include funding of joint venture operations as first line charge to guarantee sustainable oil and gas production and national reserve growth.

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