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A group, identified as Yoruba Stakeholders Assembly, has lent its voice to the recent controversy surrounding the pricing of premium motor spirit (PMS), popularly called petrol.

 

In a statement signed by the Convener, Yoruba Stakeholders Assembly, Comrade Dayo Olawale and made available to Realtime.ng, the group noted that the Federal Government of Nigeria has hands off control of PMS pricing, allowing market forces, the reality of fuel acquisition rates and other variables to prevail.

 

It called on Nigerians to remain wise and discerning consumers of information in the midst of the various public discourse in order to collectively address the challenges of integrity and transparency on the issue.

 

The full statement:

 

As a committed voice for transparency and awareness in Nigeria, the Yoruba Stakeholders Assembly seeks to address the recent misinformation surrounding the pricing of Premium Motor Spirit (PMS) in the country. In this era of rampant speculation and misinformation, it is crucial to separate facts from fiction – especially when the livelihoods of ordinary Nigerians are at stake.
Let this statement serve as a reminder that informed citizens are the backbone of a thriving democracy. A nuanced understanding of market dynamics, governmental roles, and inter-business negotiations is essential in fostering a culture of accountability and transparency. We urge all Nigerians to remain vigilant, seek verifiable facts, and engage in productive discussions that ultimately contribute to a more sustainable future for our nation.

 

  • Fact 1: The Non-Existence of Government Control Over PMS PricingContrary to popular belief, it is imperative to clarify that neither the government nor the Nigerian National Petroleum Company  Limited (NNPC Ltd) possesses the authority to fix the price of PMS. The pricing mechanism for PMS has undergone a significant transformation, evolving into a deregulated market where market forces predominantly dictate prices. This framework is designed to create a competitive environment that benefits consumers while fostering a healthier economic climate.

 

  • Fact 2: Market Forces at Play
    In a deregulated market, the price of PMS is influenced by multiple factors, including supply and demand, global oil prices, and operational costs related to refining and distribution. The NNPC Ltd has actively engaged with private entities to ensure a steady supply of fuel, thus promoting competition and potentially lowering prices.

 

  • Fact 3: The Reality of Fuel Acquisition Rates
    Recent discussions have brought to light the fact that NNPC Ltd procured fuel from Dangote Refinery at a cost of N898per liter. It is critical to emphasize that NNPC Ltd’s engagement with Dangote was aimed exclusively at ensuring that Nigerians have access to fuel at a fair price. This negotiation process underscores NNPC Ltd’s commitment to representing the interests of the Nigerian populace.

 

  • Fact 4: Sustaining Affordable Fuel Prices
    For the past year, the market price of petrol has hovered around N1,100per liter. However, thanks to the proactive measures undertaken by NNPC Ltd, ordinary Nigerians have been shielded from these soaring prices, benefiting from a subsidized rate of N620 per liter. This has been possible due to NNPC Ltd covering the shortfall—an effort that, while noble, has become an unsustainable endeavor. This cry for sustainability reflects NNPC Ltd’s commitment to balancing providing affordable fuel and maintaining fiscal responsibility.

 

  • Fact 5: Misconceptions Regarding Pricing Dynamics
    There is a misconception that the government dictated the pricing structure for Dangote’s fuel. In actuality, it is Dangote who independently decided to sell his refined fuel to NNPC Ltd at N898per liter. Initial negotiations revealed Dangote’s proposed price to be well over N900 per liter, which NNPC Ltd successfully negotiated down to a more manageable rate for the benefit of the Nigerian consumer.

 

  • Fact 6: Ensuring a Competitive Market Landscape
    NNPC Ltd’s directive to Dangote to also sell his fuel to other marketers, under a willing buyer-willing seller basis as outlined in the Petroleum Industry Act (PIA), reinforces the commitment to creating a competitive market. This action aims to ensure that pricing remains fair, accessible, and transparent—principles that should govern all transactions in the energy sector.

 

  • Fact 7: Clarifying Misunderstandings Regarding Pricing Changes
    Recent statements suggesting that Dangote intends to sell fuel to Nigerians at prices significantly lower than market rates, only for the government to intervene, are grossly misinformed. The narrative that suggests government manipulation of fuel prices is not grounded in reality. The truth lies in the fact that the price negotiated by NNPC Ltd is a direct result of market influences, competitive negotiations, and the pressing need to ensure fair access to fuel for all Nigerians.

 

  • A Call for AwarenessIn conclusion, as we navigate these turbulent waters of economic discourse and fuel pricing, we urge all Nigerians to remain wise and discerning consumers of information. It is vital for the public discourse to be anchored in facts rather than fiction so that we, as a nation, can collectively address the challenges we face with integrity and transparency.

    The Yoruba Stakeholders Assembly is committed to fostering an informed citizenry—one that propels Nigeria towards a sustainable future, grounded in facts.

    Signed:
    Comrade Dayo Olawale
    Convener,
    Yoruba Stakeholders Assembly

 


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