The Petroleum Products Pricing Regulatory Agency (PPPRA) has hinted that Nigerians should expect to pay less for premium motor spirit (PMS) also known as petrol with the recent plunge in the price of crude oil in the international market.

According to the agency, the reduction in the price of crude oil has led to the price of petrol falling below the government approved pump price of N145/litre. In addition, the agency said it expects the Nigerian National Petroleum Corporation (NNPC) to start recording over-recovery instead of the under-recovery as has been posting if the trend continues. It also expressed confidence the situation would enable other marketers commence importation of PMS (Petrol).

General manager, Corporate Services Department, PPPRA, Apollo Kimchi, stated this in a statement issued on Monday in Abuja. “With the recent plunge in the price of crude oil in the international market, the agency has observed a downward trend in the expected open market price of PMS, below the government approved pump price of N145/litre. “It is expected that over-recovery could be witnessed and if this trend continues, thus will enable other marketers commence importation of PMS (Petrol),” he said.

Refuting recent allegations in some media that agency was currently enveloped by uncertainty as the NNPC has silently taken over one of its crucial responsibilities of regulating the price of petroleum products in the downstream sector, the agency said it has only changed its module of operations as the situation demands.

Part of the statement reads, “PPPRA as an agency has been dispensing its obligation in line with the mandates as contained in the Act that establishes it and is not aware that another agency has taken over its duties. “The PPPRA website is regularly updated with relevant industry data except for occasional technical glitches affecting upload of the data,”he said. On price regulation, Apollo said, “The agency administered the Price Modulation Mechanism (PMM) for the period of January to May, 2016. Presently, the scheme managed by PPPRA since May 2016 is the Appropriate Pricing Framework (APF). “Under this scheme, the agency regulates petroleum products supply and distribution through issuance of Quantity Notification (QN) and LAYCAN to NNPC and other marketing companies (OMCs). It also monitors discharges at various facilities nationwide.”

The statement identified roles currently played by the agency to include provision of daily, weekly and monthly reports on Petroleum Products Markets Fundamentals; supply and distribution data to the Office of Minister of State for Petroleum Resources and NNPC. Others are periodic provision of information to other government agencies upon request, such as, National Bureau of Statistics (NBS) and some committees of the national assembly, in addition to regularly monitoring trends in the market fundamentals (petroleum products prices) and makes such information available to industry stakeholders.