PPPRA, NNPC, Others Meet To Review Petrol Pricing Template For April

The Petroleum Products Pricing Regulatory Agency (PPPRA), the
Nigerian National Petroleum Corporation (NNPC) and stakeholders in
the downstream petroleum industry met on Friday to review the
petrol pricing template for April.

Saturday Sun gathered that the meeting became necessary as the
ex-depot price of the commodity has hit N234/litre due to the spike
in crude oil prices at the international market.

The Group Managing Director of the NNPC, Mr Mele Kyari, last
week, released a bombshell that N120 billion monthly subsidy payout
for petrol was no longer sustainable, meaning that the price of the
commodity will be determined by market forces, especially since
subsidy was not accommodated in the 2021 budget.

Nonetheless, a top government source disclosed that the meeting
was held at the NNPC towers in Abuja and had in attendance
representatives from PPPRA, NNPC, Ministry of Petroleum Resources,
Petroleum Equalization Fund (PEF) and the Department of Petroleum
Resources (DPR).

It was learnt that the meeting at the NNPC was convened to
consider a decision on a possible price hike immediately after
Easter.

What was not confirmed is if members of the organised Labour
were formally invited to the meeting.

Although the Nigerian Labour Congress (NLC) has a representative
on the Board of the PPPRA, the Labour movement has always opposed
any idea by the government on petrol price review.

A tripartite technical committee mandated to dialogue on an
acceptable framework for pricing petroleum products have not been
able to reach an agreement on the way forward on the issue.

After several meetings since September last year when it was
constituted, the meeting was suspended last month.

Labour has always insisted it would not be party to any
arrangement that would allow importation-based fuel deregulation in
the country.

The Minister of State for Petroleum Resources, Timipre Sylva
explained that the decision to suspend the meeting was temporary,
and not as a result of any disagreement by the parties.

He said the decision for the meeting to take a short break was
to allow for further consultation with the relevant interested
parties to the issue.

The Minister assured that the dialogue would be reinstated
immediately after the Easter holidays.

On March 11, 2021, the PPPRA stirred the hornet’s nest about
possible plans by the government to increase the retail price of
petrol.

The agency had published what it called “monthly Guiding Price
template of petrol,” to give the fuel consuming public an idea
about the most realistic guide to fuel price.

Since then, speculations have been rife that a review of the
petrol price was inevitable.

The Petroleum Products Pricing Regulatory Agency (PPPRA), the
Nigerian National Petroleum Corporation (NNPC) and stakeholders in
the downstream petroleum industry met on Friday to review the
petrol pricing template for April.

Saturday Sun gathered that the meeting became necessary as the
ex-depot price of the commodity has hit N234/litre due to the spike
in crude oil prices at the international market.

The Group Managing Director of the NNPC, Mr Mele Kyari, last
week, released a bombshell that N120 billion monthly subsidy payout
for petrol was no longer sustainable, meaning that the price of the
commodity will be determined by market forces, especially since
subsidy was not accommodated in the 2021 budget.

Nonetheless, a top government source disclosed that the meeting
was held at the NNPC towers in Abuja and had in attendance
representatives from PPPRA, NNPC, Ministry of Petroleum Resources,
Petroleum Equalization Fund (PEF) and the Department of Petroleum
Resources (DPR).

It was learnt that the meeting at the NNPC was convened to
consider a decision on a possible price hike immediately after
Easter.

What was not confirmed is if members of the organised Labour
were formally invited to the meeting.

Although the Nigerian Labour Congress (NLC) has a representative
on the Board of the PPPRA, the Labour movement has always opposed
any idea by the government on petrol price review.

A tripartite technical committee mandated to dialogue on an
acceptable framework for pricing petroleum products have not been
able to reach an agreement on the way forward on the issue.

After several meetings since September last year when it was
constituted, the meeting was suspended last month.

Labour has always insisted it would not be party to any
arrangement that would allow importation-based fuel deregulation in
the country.

The Minister of State for Petroleum Resources, Timipre Sylva
explained that the decision to suspend the meeting was temporary,
and not as a result of any disagreement by the parties.

He said the decision for the meeting to take a short break was
to allow for further consultation with the relevant interested
parties to the issue.

The Minister assured that the dialogue would be reinstated
immediately after the Easter holidays.

On March 11, 2021, the PPPRA stirred the hornet’s nest about
possible plans by the government to increase the retail price of
petrol.

The agency had published what it called “monthly Guiding Price
template of petrol,” to give the fuel consuming public an idea
about the most realistic guide to fuel price.

Since then, speculations have been rife that a review of the
petrol price was inevitable.