The Nigerian National Petroleum Company, NNPC, has denied issuing the directive on Nigeria’s new petrol price. The company claimed that the Nigerian Midstream and Downstream Petroleum Regulatory Authority, or NMDPRA, is directly responsible for the regulation of fuel prices. According to the guardian, NNPC authorized an increase in the pump prices of Premium Motor Spirit (PMS) from N165 per liter to N179 per liter on Tuesday 19th July 2022. Guardian stated that the majority of filling stations in Lagos have adopted different price models. While some filling stations have changed the price on their meters to reflect the current price they are selling at, others have left theirs to show the approved retail price of N165 per litre but were selling above the displayed price. A spokesperson for the NNPC, Garba Deen Muhammad said: “The NNPC no longer approves pump price review. That is the work of the midstream and downstream authorities. I have no idea. They are the ones that tell you what price regime the government has approved, not NNPC. NNPC has already exited all that situation. We are operating just like MTN now.” Speaking with Vanguard, Mr. Olumide Adeosun, the chairman of the Major Oil Marketers Association of Nigeria (MOMAN), revealed that the cost of operations had drastically increased as a result of the ongoing conflict in Ukraine and the restriction on Russian oil. He said that the rising price had exceeded the capacity of the operators to distribute and market petrol throughout the country. According to Mr. Mike Osatuyi, National Operation Controller of the Independent Petroleum Marketers Association of Nigeria, IPMAN, the previous N165 per litre pump price could not be sustained. He said: “We had tried in the past to sustain supply, but it is no more possible because of rising costs of operations in the downstream sector, especially now that the price of diesel has risen to N800 per litre”. Also, the National President, Oil and Gas Service Providers Association of Nigeria, OGSPAN, Mazi Colman Obasi, said: “This seems to be an instant or temporary response to problems. From all indications, the complete deregulation of the sector is better.”
There has been a recent non-uniformity in the prices of PMS with the new prices tending towards an upward review. It is believed that this would solve the recent crisis of fuel scarcity in the country. Various filling stations have increased prices of PMS as reported by the guardian which does not seem to affect the prices of AGO/MGO.
Source: Vanguard NGR, The Guardian
