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Nigerian oil marketers have asked the Buhari administration to provide a pricing formula that will guide the monthly adjustments in the pump price of Premium Motor Spirit (PMS), popularly known as petrol. They said this would forestall dislocations at the retail end of the value chain.

The Major Oil Marketers Association of Nigeria (MOMAN), Depot and Petroleum Products Marketers Association of Nigeria and Petroleum Products Retail Outlets Owners Association of Nigeria, made the call at a webinar on Thursday. The operators disclosed that marketers often kept low stock towards month end due to the uncertainty.

The dealers explained that they thread cautiously because the Petroleum Products Pricing Regulatory Agency (PPPRA) still determines the price the product is sold despite deregulation.

DAILY POST recalls that the federal government recently declared that Nigeria’s oil sector had been deregulated.

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But the meeting expressed concerns about the style of market deregulation, including pricing, business models, competition, new investments and value-creation in the downstream petroleum industry.

MOMAN Chairman, Adetunji Oyebanji, said that if the market determines the prices, there will be marginal changes rather than everyone rallying around to change prices.

“Marketers continue to advocate proper legislation to allow market dynamics to prevail. This because people keep low stock towards month-end because they fear price reduction and are worried that they might be unable to plan effectively.

“Government must ensure that there is a level playing field by removing monopolies, while a strong anti-competition agent should be in place to discourage operators from taking advantage of a free system,” they said.

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