Nigerians should be ready to pay high or low prices for petrol following the price liberalisation scheme currently in place , the Petroleum Products Pricing Regulatory Agency said on Monday .
The PPPRA is also engaging with the Central Bank of Nigeria to determine the applicable foreign exchange rates for the importation of petroleum products by oil marketers .
The agency ’ s Executive Secretary, Abdulkadir Saidu, said these while answering questions on the new PMS price regime in Nigeria.
He said , “ What we have in place is a market reflective pricing system. Petroleum products prices will be adjusted in line with market realities and the result is what we see presently with prices on the downward slide .
“ Accordingly , price will naturally be adjusted to reflect a true picture of market fundamentals at any particular period, high or low .”
He , however , noted that efforts were being made to develop alternative fuels to the PMS by deepening the utilisation of Liquefied Petroleum Gas/ Compressed Natural Gas as auto gas in Nigeria.
Saidu said this would come into fruition in the medium term and would help to cushion the effect in case of a situation of high oil price .
On what the PPPRA was doing to ensure that marketers get forex at the official rate to promote price affordability, he said the agency was working with the CBN on this .
Saidu said , “ The agency is engaging with the CBN to determine the applicable forex rates for the importation of petroleum products and modality for accessing the applicable forex window by marketers .
“ This rate is reflected on the pricing template to determine the Expected Open Market Price of the product . This means that going forward , the guiding price to be advised will be determined based on the rates quoted by the CBN. ”
The PPPRA boss said the price would guide the sale of the PMS in Nigeria, adding that the agency planned to extend the same pricing mechanism to kerosene , diesel and others.
Saidu noted that the essence of the price band was to ensure price efficiency that would be beneficial to both consumers and oil marketers .
He explained that the market - based pricing regime came into effect on March 19 following government ’s approval for the adjustment of PMS price from N 145 to N 125/ litre.
“ Going forward, pricing of the PMS will reflect market fundamentals. The PPPRA will continue to monitor price trends and advise monthly guiding price for all petroleum products , based on prevailing market realities and other pricing fundamentals, ” he stated.
Saidu explained that the recent plunge in oil price occasioned by the outbreak of COVID- 19 and slowing global oil demand had a direct bearing on the EOMP of petrol , pushing it to a level below the pump price cap of N 145/ litre.
This, he said , made the government to order the Nigerian National Petroleum Corporation to review downward its ex- coastal price of petrol .
Saidu said , “ Furthermore, the plunge in global crude prices made it increasingly difficult for government to finance the 2020 national budget as it was predicated on a crude price of $57 per barrel .
“ The low crude oil prices , therefore, presented the opportunity to address the lingering challenges associated with the under / over-recovery regime and free up vital funds required to develop other key sectors of the economy .”
He said the new initiative would also stimulate private investment in the downstream sector and encourage the resumption of products importation by marketers , a development that would revive many dormant depots .
Saidu stated that under the new regime , PPPRA would continue to carry out all its mandates such as determining the pricing policy of petroleum products and regulating the supply and distribution of products .
He expressed optimism that the upcoming Dangote Refinery and other modular refinery projects nationwide would be able to key into the new pricing regime .

source : https://punchng.com/be-ready-to-pay-higher-for-fuel-pppra/

Nawa oh. May God help this country.

Nigeria don cast since.

Confused marketers. Now that PMS is not in demand the price of petrol should be low and not the other way round. Nevertheless in nigeria, things always have a way of going opposite from the direction of plan.

May God help us o!

It is for the best however APC are hypocritical. Wasn't this NOI proposed years back?

what rubbish! still speaking of price modulation mechanisms and liberalisation in same sentence?

If they want to maintain control let them do it and if they want to deregulate let them but they cant eat their cake and still have it.

PREVIOUSLY (covid reality)
Currently market fundamentals (prominent ones: low demand, over supply of crude) has meant the cost buildup of PMS /petrol is low hence the low pump price. When crude goes up and demand picks up again pump price will rise. Theoretically government cushion the effect of this rise on the masses by asking us to pay max 145 naira while it pays whatever balance is above that - that's the idea of subsidy.

A noble idea no doubt, but one fraught with dubious practices:

1. All the countries surrounding Nigeria sell PMS more than double that of Nigeria
Benin PMS 337.8 approx.
Niger PMS 337.8 approx.
Chad PMS 329.6 approx.
Cameron PMS 395.5
The above means there is every incentive to smuggle PMS out of Nigeria (why sell in 9ja for 145 when you can sell at 395 in Cameron). In essence we are subsidising WA

2. Lack of transparency (Forex) means, we have to believe what ever NNPC tells us it imports PMS for (NNPC is currently the sole importer). Government officials in nigeria are not known to put interest of the country first when it comes to procurement. what you can buy at X naira privately might cost Nigerian government 3X + 2 naira!

CURRENTLY (what is being suggested by PPRA)
They are recommending price be modulated (regulated) to the extent which CBN determines (indirectly), depending on the volume of forex it makes available to marketers and the rate which it (CBN) sets, the PPRA will fix a monthly price band.
Like always it is a good idea theoretically but make no mistake it would be exploited in Nigeria

WAYOUT
Complete financial and operational deregulation of the downstream let government be a player (important at a premium and sell at a loss, that's its business) but let the players source their forex, source their products and sell at their price. Initially it might hurt a bit due to adjustments in the market but in the long run it pays off.

1. Although dollars may become expensive initially but some of these multinationals can leverage on their parent or exploration companies to source forex saving govt the stress.

2. It save us billions we previously spend on subsidy for the whole of West Africa, since all our neighbours sell at least 2 time our pumpprise smugglers profit from selling Nigerian fuel outside Nigeria.

3. AGO (diesel) is fully deregulated. we can see that supply has been constant and price has naturally fluctuated between a bearable 160 to 290 over the last 2years, depending on market fundamentals

Abeg I cant talk again.

See grammar.... This is still the same thing they criticised some year ago

-Like seriously?

Some people will still wail at this, it's the normal when the price is completely deregularised, international price dictates the local price. But government will have to still be proactive so those evil marketers will always adjust accordingly as at when due, if not they will be forming a kind of association that will see to them rapping off the masses. A typical example is, we might not have downward review of price locally in months if international price is down for months but on the other way round the moment price jumped up, you start to see the effect locally even before that increase. That is how devilish we are in this country. Greed is in the blood.
Diesel is fully deregularised and no price has dropped not even one Naira since Crude has been cheaper than a paint of Garri. Those evil marketers are cashing out and may not tamper with the price until may be when government decides to challenge them to drop the price. We are just like that, bleeped up greedy people.

What exactly did I do wrong in my previous life for me to be born in Nigeria ?

Fuel should be N40 to N65 per litre.

A barrel of crude oil is $19.

This is another avenue for our industrious brothers to wail over Kanu death
May Jesus accept his soul

Saifulah:
what rubbish! still speaking of price modulation mechanisms and liberalisation in same sentence?

If they want to maintain control let them do it and if they want to deregulate let them but they cant eat their cake and still have it.

PREVIOUSLY (covid reality)
Currently market fundamentals (prominent ones: low demand, over supply of crude) has meant the cost buildup of PMS /petrol is low hence the low pump price. When crude goes up and demand picks up again pump price will rise. Theoretically government cushion the effect of this rise on the masses by asking us to pay max 145 naira while it pays whatever balance is above that - that's the idea of subsidy.

A noble idea no doubt, but one fraught with dubious practices:

1. All the countries surrounding Nigeria sell PMS more than double that of Nigeria
Benin PMS 337.8 approx.
Niger PMS 337.8 approx.
Chad PMS 329.6 approx.
Cameron PMS 395.5
The above means there is every incentive to smuggle PMS out of Nigeria (why sell in 9ja for 145 when you can sell at 395 in Cameron). In essence we are subsidising WA

2. Lack of transparency (Forex) means, we have to believe what ever NNPC tells us it imports PMS for (NNPC is currently the sole importer). Government officials in nigeria are not known to put interest of the country first when it comes to procurement. what you can buy at X naira privately might cost Nigerian government 3X + 2 naira!

CURRENTLY (what is being suggested by PPRA)
They are recommending price be modulated (regulated) to the extent which CBN determines (indirectly), depending on the volume of forex it makes available to marketers and the rate which it (CBN) sets, the PPRA will fix a monthly price band.
Like always it is a good idea theoretically but make no mistake it would be exploited in Nigeria

WAYOUT
Complete financial and operational deregulation of the downstream let government be a player (important at a premium and sell at a loss, that's its business) but let the players source their forex, source their products and sell at their price. Initially it might hurt a bit due to adjustments in the market but in the long run it pays off.

1. Although dollars may become expensive initially but some of these multinationals can leverage on their parent or exploration companies to source forex saving govt the stress.

2. It save us billions we previously spend on subsidy for the whole of West Africa, since all our neighbours sell at least 2 time our pumpprise smugglers profit from selling Nigerian fuel outside Nigeria.

3. AGO (diesel) is fully deregulated. we can see that supply has been constant and price has naturally fluctuated between a bearable 160 to 290 over the last 2years, depending on market fundamentals

Abeg I cant talk again.

You have spoken well.

Especially the bit about smuggling...why won't a marketer buy fuel at N140(under the old regimen) and sell across the border , and make a sweet profit?

Deregulation is the answer.

Despite the drop in price,you guys are saying we should prepare to pay Higher price or Lower. Why is that when the whole world is going 10 steps forward my country is talked 20 steps backwards. Am just tired of everything. This matter is more that what every Nigeria can carry.
#SurvivingCorona
#SurvivingLockdown
#SurvivingNigeria
#SurvivingSinzu(Buhari)
#Surviving2020

kolaaderin:
Some people will still wail at this, it's the normal when the price is completely deregularised, international price dictates the local price. But government will have to still be proactive so those evil marketers will always adjust accordingly as at when due, if not they will be forming a kind of association that will see to them rapping off the masses. A typical example is, we might not have downward review of price locally in months if international price is down for months but on the other way round the moment price jumped up, you start to see the effect locally even before that increase. That is how devilish we are in this country. Greed is in the blood.
Diesel is fully deregularised and no price has dropped not even one Naira since Crude has been cheaper than a paint of Garri. Those evil marketers are cashing out and may not tamper with the price until may be when government decides to challenge them to drop the price. We are just like that, bleeped up greedy people.

Your point is valid. But that is the short term you are looking at.

In the long term after prices go up and these "evil marketers" increase their prices locally, this create incentives for others to invest in the IMPORTATION of fuel in the downstream sector as there is profit to be made, healthy competition then sets in driving prices downwards.
In the short run you described above, govt through the NNPC stations can keep the marketers honest by selling at a lower price before the long run adjustments

Here we go.

You guys can't be serious

Even when we are supposed to be buying gas for #50 by now
Nawa oo

kolaaderin:
Some people will still wail at this, it's the normal when the price is completely deregularised, international price dictates the local price. But government will have to still be proactive so those evil marketers will always adjust accordingly as at when due, if not they will be forming a kind of association that will see to them rapping off the masses. A typical example is, we might not have downward review of price locally in months if international price is down for months but on the other way round the moment price jumped up, you start to see the effect locally even before that increase. That is how devilish we are in this country. Greed is in the blood.
Diesel is fully deregularised and no price has dropped not even one Naira since Crude has been cheaper than a paint of Garri. Those evil marketers are cashing out and may not tamper with the price until may be when government decides to challenge them to drop the price. We are just like that, bleeped up greedy people.

Zombee

Okay

H

Even when crude oil is at all time low?

Which way Nigeria?

Saifulah:
what rubbish! still speaking of price modulation mechanisms and liberalisation in same sentence?

If they want to maintain control let them do it and if they want to deregulate let them but they cant eat their cake and still have it.

PREVIOUSLY (covid reality)
Currently market fundamentals (prominent ones: low demand, over supply of crude) has meant the cost buildup of PMS /petrol is low hence the low pump price. When crude goes up and demand picks up again pump price will rise. Theoretically government cushion the effect of this rise on the masses by asking us to pay max 145 naira while it pays whatever balance is above that - that's the idea of subsidy.

A noble idea no doubt, but one fraught with dubious practices:

1. All the countries surrounding Nigeria sell PMS more than double that of Nigeria
Benin PMS 337.8 approx.
Niger PMS 337.8 approx.
Chad PMS 329.6 approx.
Cameron PMS 395.5
The above means there is every incentive to smuggle PMS out of Nigeria (why sell in 9ja for 145 when you can sell at 395 in Cameron). In essence we are subsidising WA

2. Lack of transparency (Forex) means, we have to believe what ever NNPC tells us it imports PMS for (NNPC is currently the sole importer). Government officials in nigeria are not known to put interest of the country first when it comes to procurement. what you can buy at X naira privately might cost Nigerian government 3X + 2 naira!

CURRENTLY (what is being suggested by PPRA)
They are recommending price be modulated (regulated) to the extent which CBN determines (indirectly), depending on the volume of forex it makes available to marketers and the rate which it (CBN) sets, the PPRA will fix a monthly price band.
Like always it is a good idea theoretically but make no mistake it would be exploited in Nigeria

WAYOUT
Complete financial and operational deregulation of the downstream let government be a player (important at a premium and sell at a loss, that's its business) but let the players source their forex, source their products and sell at their price. Initially it might hurt a bit due to adjustments in the market but in the long run it pays off.

1. Although dollars may become expensive initially but some of these multinationals can leverage on their parent or exploration companies to source forex saving govt the stress.

2. It save us billions we previously spend on subsidy for the whole of West Africa, since all our neighbours sell at least 2 time our pumpprise smugglers profit from selling Nigerian fuel outside Nigeria.

3. AGO (diesel) is fully deregulated. we can see that supply has been constant and price has naturally fluctuated between a bearable 160 to 290 over the last 2years, depending on market fundamentals

Abeg I cant talk again.

bull shit by a government apologist,do you know what is called comparative advantage,nigeria has comparative advantage in oil,it should benefit
The problem of subsidy is because of lazy, dubious , corrupt inept government who could not have refining capacity in the country and you want to shift that to the people,your argument is dubious,compare apple with Apple,this west African countries example is wack,as for the smuggling what is the customs there for and whose job is it to see they are efficient at their job,you now transfer the burden of custom failure to Nigerians, the government should do their job that is why they are elected,what stops the government from exploring the lucrative west African or African markets by exporting refined products there and earn additional forex
Government have no excuse not to do their job of improving people's welfare

But the current price is not a reflection of the present day market realities, what/rubbish is he vomiting ?

surgical:
bull shit by a government apologist,do you know what is called comparative advantage,nigeria has comparative advantage in oil,it should benefit
The problem of subsidy is because of lazy, dubious , corrupt inept government who could not have refining capacity in the country and you want to shift that to the people,your argument is dubious,compare apple with Apple,this west African countries example is wack,as for the smuggling what is the customs there for and whose job is it to see they are efficient at their job,you now transfer the burden of custom failure to Nigerians, the government should do their job that is why they are elected,what stops the government from exploring the lucrative west African or African markets by exporting refined products there and earn additional forex
Government have no excuse not to do their job of improving people's welfare

I think I get your argument even though it is disjointed.

1. How are my a government apologist when government is arguing for controlled deregulation (maintaining regulation) and I am arguing for total deregulation? I am against the government on this one.

2. For the African example you claim wack, hows that? Is it the prices of our neighbours that are at least twice our price? or is it the fact that you and I know that our borders aer as porous as a basket? especially the northern ones.

3. I agree with you government need to cater for the welfare of its citizens, but we are not discussing what ought to be but rather what is. and the reality is many people are feeding fat on regulation at the expense of the country.

You may not know but I can tell you for a certainty that 10 million litres of our so called 60+million daily local fuel consumption is actually taken outside Nigeria - to our neighbours (PPRA observedthis drop when borders were shut). with landing cost averaging 180/liter in September 2019. Nigeria was basically throwing 2billion naira daily subsidising smuggled fuel (in a month that's 60 billion)

if you are ok with this, I am not.