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PPPRA Explains Increase In Pump Price Of Petrol

The Petroleum Products Pricing Regulatory Agency (PPPRA) has stated that full deregulation of the downstream oil and gas sector will help force down price of Premium Motor Spirit (PMS) otherwise called petrol.

Its Executive Secretary, Mr Saidu Abdulkadir, who disclosed this in Abuja, attributed the jump in the pump price of the commodity to cost of petroleum products in the international market and the cost of acquiring foreign exchange (FOREX).

According to him, the newly-adopted market-based pricing system was in view of the need to promote the growth of the Nigerian petroleum industry and the economy in general.

He said that oil marketing companies had resumed fuel importation and had directly imported a total of 536,000 metric tonnes of PMS into the country.

He said additional investment in local refining will engender competition and force down prices of products, adding that his agency is cognizant of the public outcry trailing the recent surge in petroleum products prices.

“However, this decision is a reflection of the new market-based pricing system, which does not seek to harm consumers but foster growth in the sector and prevent wastages resulting from subsidy.

“The recent upward movement in pump price is becoming a bone of contention because of the fragile state of the economy.

“However, deregulation of the sector is in the country’s best interest because competition has a way of forcing down prices and ensuring that companies place a tight rein on production cost such that wastes that could be passed on to consumers in form of high prices are eliminated.

“The trillions of naira that would have been spent subsidising PMS could be injected into other key sectors such as agriculture, education, health, power and infrastructure.”