The Petroleum Products Pricing Regulatory Agency (PPPRA) says full deregulation of the downstream oil and gas sector will help force down price of Premium Motor Spirit (PMS) also known as petrol.
The agency made this known in a statement signed by its Executive Secretary, Mr Saidu Abdulkadir in Abuja, on Sunday.
The News Agency of Nigeria (NAN) recalls that the PPPRA on July 1, announced a pump price band of N140.80k and N143.80k per litre for PMS.
This was an increase by N20.30 from the June price of N121.50 per litre..
He attributed the rise in the pump price of the commodity to cost of petroleum products in the international market and the cost of acquiring foreign exchange (FOREX).
He explained that 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.
According to him, additional investment in local refining, will engender competition and force down prices of products.
“The 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.
Join Daily Trust WhatsApp Community For Quick Access To News and Happenings Around You.
