In a recent official statement, the Nigerian National Petroleum Company Limited (NNPCL) has formally refuted allegations that there was an agreement with the Independent Petroleum Marketers Association of Nigeria (IPMAN) or other parties over the price of Premium Motor Spirit (PMS), commonly known as petrol.
This comes after IPMAN Chairman, Abubakar Maigandi, claimed that NNPCL had agreed to reduce the deposit price of petrol for its members from N958 to N955 per litre. However, the NNPCL Head of Communications, Olufemi Soneye, clarified that no such agreement existed.
He stressed that under the current deregulation regime, fuel prices are determined by market forces and not by agreements between NNPCL and marketers.
“If there is no tariff agreement between IPMAN, NNPCL or any other distributor. Prices are determined by market forces under the current deregulation regime,” Soneye said.
He also clarified that NNPCL had only given a one-time discount of N3 to distributors with funds deposited with NNPCL to facilitate fuel loading and avoid shortages.
“This was a temporary measure. Prices continue to be determined by market forces and not by NNPCL,” he added.
This clarification by NNPCL highlights the importance of understanding the mechanisms at work in determining fuel prices and underscores the crucial role of market forces in this process. It is essential for distributors, consumers and industry players to understand that prices are not set arbitrarily but are a reflection of market conditions and dynamics.
Ultimately, this affirmation by NNPCL reaffirms the commitment to transparency and compliance with market principles in the fuel sector in Nigeria, thereby shedding a bright light on fair and balanced business practices that must prevail in the industry.