Financial Energy Review
The recent increase of Pump price of Premium Motor Spirit by the Petroleum Products Pricing Regulation Agency (PPPRA) may have giving oil marketers a breather however they are still insisting on a total price deregulation and market forces to be a major determinant.
According to PPPRA consumers of petrol in the country would pay a 16.4 per cent increase in the price of petrol for the month of July.
The agency said the approved new retail price for petrol for the month will vary between N140.80 and N143.80 per litre price band.
The new price arrangement replaces the previous price band of N121.50 and N123.50 per litre announced by the agency for June 2.
However, marketers have before now advised that this periodic approved price modulation template by PPPRA should be moderated by market forces
According to Major Oil Marketers Association of Nigeria (MOMAN) even though PPPRA has said the price charge is in reaction to developments in the market and that as crude goes up and down, so will the prices of refined petroleum products go up and down. “We still feel it would be better for marketers to handle pricing”
Marketers said that Nigeria can no longer afford to subsidise the prices. so expectedly consumers should be ready for these periodic changes.
On whether the new price increase has brought a breather in the cost of running their business Mr. Tunji Oyebanji, Chairman of MOMAN said for now its some relief on their costs. “But still there is room for improvement at least we now seem to be going in the right direction” he said.
However, he maintained that sourcing of forex remains an issue so NNPC may continue to be the major importer of products until further notice.
