Petrol price is not connected with crude oil price – PPPRA

Petrol pump

THE Petroleum Products Pricing Regulatory Agency, PPPRA, has said that there was no relationship between the prices of crude oil in the international market and the pump price of petroleum products. Saidu Abdulkadir, executive secretary, PPPRA, said the market of the product had been deregulated and only marketers could fix its pump price.

Speaking at a press briefing in Abuja, Abdulkadir said there was no direct relationship between the prices of crude oil and its products. He explained that so many factors play a role but refused to give the breakdown of the factors that play the role and their prices. “It is a deregulated market. If you go to the market to buy bottled water, you don’t ask the seller how much did you produce the bottled water?

“If we were in a situation where markets (prices) are being fixed, that is when you should have asked that question. But in a purely deregulated market, there is nothing like price build-up (breakdown) because you are free to source for the product,” he said.

According to Abdulkadir, PPPRA only ensures that marketers play the game in compliance with its rules by monitoring them. He, however, projected that when the system starts stabilizing, the question of high petrol price will no longer arise.

But this is contrary to what the public have been fed with on the deregulation of marketing of petrol. It, therefore, failed to say how the Pipeline Products Marketing Company, PPMC, a subsidiary of the Nigerian National petroleum Corporation, NNPC, arrived at the ex-depot price of N151.56 per litre of petrol. The ex-depot price is also referred to as the landing cost of petroleum products from which the dealers (marketers) know the pump price.

– Sept. 11, 2020 @ 16:05 GMT |

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