According to the Minister of Labour and Employment, Chris Ngige, a technical committee has been set up to ensure there is stability in the price of petrol.

He said: “Our discussion was fruitful and the Nigerian National Petroleum Corporation which is the major importer and marketers of petroleum products and customers have agreed that there will be a slide down of the pump price of PMS and that the price cut will get us about N5 per litre and that the price cut will take effect from next Monday, a week today.

“A technical committee has been set up to ensure price stability in the industry. These committees, which will report back to the larger house on January 25, will appraise the market forces and other things that would ensure stability in the industry.”

He stressed that the price reduction was meant to look at the angles where NNPC had agreed to cut costs and not suspend deregulation activities as it doesn’t affect the price of crude oil.

While corroborating the announcement, the president of Nigeria Labour Congress(NLC), Ayuba Wabba said the new price slash was a product of a joint committee of NNPC and labour representatives.

Recall that few months ago, Despite the largely unchanged international crude oil price, Petroleum Products Marketing Company (PPMC), a subsidiary of NNPC, authorized the increase of the price of petrol at a difference of N7.50 kobo.

It was asserted that the N7 increase in ex-depot price would translate into an increase in pump prices. Which means that Nigerians were expected to buy Petrol at higher prices.

Meanwhile, the Federal Government had removed fuel subsidy to allow the market regulate fuel price in line with international market crude oil price.

It is important to note that the announcement which was made at a meeting with stakeholders will take effect from December 14, 2020.

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According to the Petroleum Products Marketing Company (PPMC), a subsidiary of NNPC, it had authorized the price increasing which is a difference of N7.50 kobo. The new price of NGN155.17 kobo will lead to fuel price ranging between N167 and N175 per litre.

Speaking on the development, the National Operation Controller, Independent Petroleum Marketers Association of Nigeria, asserted that the N7 increase in ex-depot price would translate into an increase in pump prices.

He said: “The implication of the increase in the ex-depot price is that there is going to be an increase in the pump price. We are expecting the pump price to range from N168 to N170 per litre.

“Crude oil price is going up,” he said, noting that the Federal Government has fully deregulated petrol prices.

 In an internal memo directed to Executive Director, Commercial (EDC) of the PPMC with reference number PPMC/C/MK/003 and  signed by Tijani Ali, it stated that the EDC may refer to the management directives in respect of the above subject (PPMC PMS prices for November 2020).

The Memo partly reads: “In line with the above, we propose PPMC November 2020 actual prices for PMS with effect from 13th November 2020, as follows: PPMC Ex-Coastal Price for PMS N130 per litre; PPMC Ex-Depot Price (With collection) N155.17  per litre. Above is submitted for your consideration and approval.”

Despite the largely unchanged international crude oil price in the last three month, the Managing Director of PPMC approved the new price which has been moving from $40 and $42 per barrel.

Recall that the executive secretary of Petroleum Products Pricing Regulatory Agency (PPPRA) Abdulkadir Saidu disclosed that the international price of crude oil is not the only determining factor in fixing the retail pump price of petrol as other metrics come into consideration.

Similarly, the Minister of State for Petroleum Resources, Timipre Sylva stated  that the government had stepped back in fixing the price of petrol and therefore the market forces and crude oil price would continue to determine the cost of the product.

It is pertinent to know that the Federal Government had removed fuel subsidy to allow the market regulate fuel price in line with international market crude oil price.

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