The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) claims the Federal Government has no intentions to raise the price of Premium Motor Spirit despite growing lines for fuel in most areas of the nation (PMS).
This comes as Kelvin Emmanuel, the chief executive officer of Diary Hills Limited, claimed that a lack of foreign currency and the devaluation of the naira were to blame for the shortage of PMS.
Yesterday, the NMDPRA’s corporate relations division denied rumors of a pump price increase in Abuja. The Nigerian National Petroleum Corporation Limited (NNPCL), specifically, imported PMS, with current stock levels sufficient for 34 days, according to the Authority.
“Consequently, marketers and the general public are advised to avoid panic buying, diversion of products, and hoarding,” it stated.
According to the NMDPRA, the Authority promised the public that it would continue to watch the supply and distribution of all petroleum products countrywide, particularly during this holiday season, in accordance with its duties as set forth in the Petroleum Industry Act (PIA).
When asked about the possibility of fuel lines leading up to the new year’s festivities, Emmanuel responded that the spate of recent shortages of premium motor spirits, which have been reported in major cities across the nation, have nothing to do with the pathetic justification provided by the NNPC regarding the lack of stable road connections leading in and out of major depots in Tincan and Apapa.
He clarified: “The drop in the naira and unavailability of forex has raised the depot prices of PMS from N162.5 to between 205-210 per litre, which has made it impossible for MOMAN to have its members sell at the regulated price. The inflation of the daily consumption volume from 29million litres in 2016 to 66 million litres in 2022 without empirical data to back the direct sales, direct purchase arrangement that has wiped away the over $10 billion in foreign exchange revenues that NNPC used to remit to CBN as Oil receipts for use in meeting up with forex obligations, has made a simple problem even more complicated.”
He continued by saying that when the Dangote Refinery opens in 2023, Nigerians will see the reality of their daily consumption volumes. Full deregulation will also result, raising the price of a liter of gasoline above N400 while also ensuring supply without the need for extra expenses like shipping, insurance, or clearing costs.