The Nigerian National Petroleum Corporation (NNPC) against the backdrop of the new guiding price for Petroleum Motor Spirit (PMS) released by the Petroleum Products Pricing Regulatory Agency (PPPRA), has said there is no increase in its ex-depot price for the month of March. This was even as it stated that the question of if the Federal Government is now paying subsidy on the commodity, was a matter of simple “logic and arithmetic.”
The Group General Manager, Group Public Affairs Division of the Corporation, Dr Kennie Obateru made the clarification. According to him, despite the increase in oil price at the international market, its ex-depot price remains unchanged since February. He said regardless of the PPPRA’s guiding price template, the NNPC remains the current sole importer of fuel in the country. “There is no price increase in our ex-depot price, we are the sole importer of PMS into the country and we are saying that for the month of March, we are not going to increase, so irrespective of what the PPPRA has said, that is still our position” he said.
The ex-depot price is the price at which depot owners sell the commodity to marketers.
On payment of subsidy, he said:” it is just simple logic and arithmetic. The price of crude has increased in the international market whatever it is we are selling is not reflective of the landing cost as we have said in previous statements.”
However, he stressed that engagements are ongoing with Labour unions and other relevant stakeholders on the price increase. “While the consultation is going on, we are going to retain the price,” he added.
Meanwhile, the National President, Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Okoronkwo, when also contacted, said the development has not been communicated to them. He stressed that engagements were still ongoing with labour unions on pricing. He, however, noted that:” In a deregulated market you don’t fix prices you sell at the price you have gotten it. The pricing thing is confusion.”
The Petroleum Products Pricing Regulatory Agency (PPPRA) had put the guiding price of premium motor spirit (PMS), for March 2021 at N211.11 per litre, but the NNPC in a post on its official Twitter page insisted that there is no increase in depot price of Premium Motor Spirit.