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Tag: PMS

  • Fuel price hike: PPPRA backtracks

    Fuel price hike: PPPRA backtracks

    The Petroleum Products Pricing Regulation Agency (PPPRA) says the March guiding prices posted on its website does not translate to increase in the pump price of Premium Motor Spirit (PMS) also known as petrol.

    The PPPRA Executive Secretary, Abdulkadir Saidu disclosed this in a statement in Abuja, on Friday.

    “The attention of the Petroleum Products Pricing Regulatory Agency (PPPRA) has been drawn to speculations about the increased pump price of PMS.

    “The PPPRA by this release wishes to state clearly that the guiding prices posted on our website was only indicative of current market trends and do not translate to any increase in pump price of PMS.

    “However, publications by the media to this effect have been misconstrued and thus misleading,’’ he said.

    He said that the introduction of the market-based pricing regime for PMS Regulation 2020 was gazetted by the Federal Government.

    According to him, based on this regulation, prices are expected to be determined by market realities in line with the dictates of market forces.

    “One of the conditions for the implementation of the Market-Based Pricing Regime for PMS Regulation 2020 is the monthly release of guiding price to reflect current market fundamentals.

    “The PPPRA in line with its mandate to maintain constant surveillance over all key indices relevant to pricing policy, monitors market trends on a daily basis to determine Guiding Prices,’’ he said.

    Saidu said that the agency was not unaware of the challenges with the supply of PMS due to some concerns leading NNPC to be the sole importer of PMS.

    “PPPRA is also mindful of the current discussion going on between the government and the Organised Labour on the deregulation policy.

    “While consultation with relevant stakeholders is ongoing, PPPRA does not fix or announce prices and therefore there is no price increase.

    “The current PMS price is being maintained while consultations are being concluded.

    “Even though market fundamentals for PMS in the past few months indicated upward price trends, the pump price has remained the same and we are currently monitoring the situation across retail outlets nationwide,’’ he added.

    Saidu assured the public of adequate products supply as the average PMS Day-Sufficiency as of March 11, 2021 was over 35 days.

    “The PPPRA pledges to continue to perform its statutory function in ensuring that the downstream sector remains vibrant as well as support both government and members of the public,’’ he said.

  • No hike in petrol price for now – Marketers

    No hike in petrol price for now – Marketers

    Major Oil Marketers Association of Nigeria (MOMAN) and Independent Petroleum Marketers Association of Nigeria (IPMAN) say there is no hike in the pump price of Premium Motor Spirit (PMS) or petrol.

    The groups confirmed the development in separate interviews on Friday in Lagos while reacting to reports that the price of PMS has been increased to N212.61 per litre.

    Currently petrol sells at N162 and N165 per litre at most filling stations across the country.

    Mr Clement Isong, the Executive Secretary, MOMAN, told NAN that the association had received communication from the Nigerian National Petroleum Corporation (NNPC) that there should be no price increment for PMS.

    Isong said, “NNPC has told us that they will not increase prices in March. If you recall, they have made a statement on that earlier and have reconfirmed to us that there is no increment.

    “They have also put it out on their social media handles.’’

    According to him, queue noticed at filling stations in some states of the country in recent weeks is due to speculation that there will be price increase.

    “What NNPC did was to take out the speculation by giving assurance that price will not go up in March and that killed the queue and demand went down.

    “What they have done again this morning is to take out the speculation out of the market. They always have enough products,’’ he said.

    Isong added that MOMAN had advised its members to continue retailing with the old price regime.

    Similarly, Mr Chinedu Okoronkwo, President, IPMAN said marketers had received communication from NNPC that there would not be any price increment until government and organised labour concluded their deliberations.

    “There is no increment. Government is still talking with labour. What we are even concerned about is total deregulation of the market.

    “There are other alternative sources of energy to PMS and we cannot continue to focus all our attention only on that product.

  • We’ve not increased ex-depot price of petrol – NNPC

    We’ve not increased ex-depot price of petrol – NNPC

    The Nigerian National Petroleum Corporations (NNPC) says it has not increased the Ex-depot price of Premium Motor Spirit (PMS) also known as petrol.

    The Group General Manager, Group Public Affairs Division of the Corporation, Dr Kennie Obateru, disclosed this while addressing newsmen in Abuja on Friday.

    Ex-deport price is the price at which oil marketers buy products at the depots, the price is what determines the price at which petrol stations will sell to motorists.

    He spoke while reacting to new PMS Pricing template released by the Petroleum Products Pricing Regulatory Agency (PPPRA) that indicted N212.61k Pumb price for the month of March.

    Obateru urged Nigerians and motorists not to engage in panic buying of the products as the corporation had no plans to increase its ex-depot price.

    “NNPC stands by that statement that we issued on March 1 that we are not increasing the Ex-depot price in the month of March and that is what it is.

    “There is no need for panicking and I can tell you from our own point of view that we will not increase the pump price of petrol and we are still standing by that March 1 decision.

    “We have sufficiency of product in the country and there is really no need for the public to panic. Like I have stated, the ex-depot price for the NNPC is still at it is, it has not increase and it will not increase in this month of March,’’ he said.

    Meanwhile PPPRA on its website on March 11, had fixed the pump price of petrol, at N212.61 per litre, for the month of March in its PMS guiding price template and said it would run from March 1 to March 31.

    According to the PPPRA, based on the average cost for the period, Feb. 1st to Feb. 28th 2021, and an average FMDQ Importer and Exporter (I&E) Naira/US Dollar Exchange Rate of N403.80, the expected retail price of PMS for March 2021, stands at N209.61 per litre and N212.61 per litre.

    This, it said remained the lower and upper band respectively.

    Giving a breakdown of the cost elements of the commodity, the PPPRA put the Expected Ex-Coastal price at N175.73 per litre, comprising Average gasoline price (FOB Rotterdam barge), and Average freight rate of N169.22 and N6.51 per litre respectively.

    It also put the Expected Landing Cost of the commodity at N189.61 per litre, comprising the addition to the ex-coastal price, of average lightering expenses, Nigeria Port Authority Charges, NIMASA charges, jetty throughput charges, storage charge and average financing cost of N4.81, N2.49, N0.23, N1.61, N2.58 and N2.17 per litre respectively.

    It further added the wholesalers’ margin of N4.03 per litre; administrative charge of N1.23 per litre; transporters’ allowance of N3.89 per litre; bridging fund of N7.51 per litre and Marine Transport Average of N0.15.

    It noted that various margins brought the expected ex-depot price, that is the price at which the commodity is sold to petrol stations, to N206.42 per litre.

    The PPPRA further stated that the inclusion of retailers’ margin of about N6.19 per litre, would bring the pump price of the commodity, the price at which it is sold to motorists, to N212.61 per litre.

    Meanwhile checks revealed that most petrol stations were selling petrol at the old price of between N162 and N168 per litre.

    Some NNPC petrol Stations visited are dispensing to motorists at N162 per litre.

  • We are not aware of petrol price hike – IPMAN

    We are not aware of petrol price hike – IPMAN

    The Independent Petroleum Marketers Association of Nigeria (IPMAN) says it has not received any official communication on Fuel price hike.

    The Chairman of the association in Kano State, Alhaji Bashir DanMalam stated this while briefing newsmen on Friday in Kano over the report going round that the pump price was increased to over N212 per litre.

    The chairman directed all his members to continue selling the litre at the old price adding that it had not received any official communication from the federal government.

    He told newsmen that whenever there was fuel increment, critical stakeholders would inform the IPMAN leadership, and urged the general public to disregard the ongoing rumour.

    Danmalam said, “the leadership of IPMAN has consulted critical stakeholders in the petroleum sector and informed them that there is no such decision of fuel increment for now.” he said.

    The chairman said the Nigerian National Petroleum Corporation (NNPC) had enough fuel for distribution across the country and urged the public to avoid panic buying.

  • Fuel scarcity panic hits Abuja

    Fuel scarcity panic hits Abuja

    The Independent Petroleum Marketers Association of Nigeria (IPMAN) has advised Nigerians to stop panic buying and stocking of Premium Motor Spirit, popularly known as petrol.

    Alhaji Suleiman Yakubu, the National Public Relations Officer of IPMAN, gave the advice in an interview on Sunday in Abuja, the federal capital territory (FCT).

    Yakubu fielded questions on the long fuel queues recorded at some filling stations in Abuja.

    He decried the panic purchases and long queues witnessed in various filling stations across the nation’s federal capital.

    Yakubu however said that crude oil price has gone up and it has affected the price products.

    He assured Nigerians that normal supply of petroleum products would soon be restored since loading have commenced at various deports.

    “We want to assure the buyers that government and marketers are doing everything possible to ensure that the products are available in every filling station within a few days starting from today,” the IPMAN spokesman told NAN.

    But some motorists who expressed disappointment over the development, urged filling stations that has fuel to sell.

  • FG scraps APER, introduces PMS for civil servants

    FG scraps APER, introduces PMS for civil servants

    The Federal Government has scrapped the Annual Performance Evaluation Report (APER), as a tool for assessing civil servants.

    Instead, government has introduced Performance Management System (PMS) as a new evaluation tool.

    The Head of the Civil Service of the Federation (HOCSF), Dr Folasade Yemi-Esan, made this known on Monday in Abuja.

    She spoke at the opening of a three-day workshop on Service-Wide Training.

    According to her, the PMS will create a digitally-driven culture of performance management in the civil service.

    Permanent secretaries, selected federal public servants from ministries, departments and agencies (MDAs) and other stakeholders were participants at the training.

    The training was organised in collaboration with the Chartered Institute of Personnel Management of Nigeria (CIPM).

    Yemi-Esan said her office had been working with its development partners, to implement flagship programmes and policy initiatives to evolve a competent workforce in the country.

    She said that the training was aimed at acquainting participants with the requisite knowledge and skills in job objectives, setting, performance appraisal and reward system.

    All these, according to her, are vital parts of the PMS that will eventually replace the APER currently being used.

    “In 2016, the Harvard Business Review reported a rising performance management revolution. It stated that traditional performance appraisals had been abandoned by more than a third of US companies,’’ she said.

    The Vice-President of CIPM, Mrs Titi Akinsanya, said the partnership between CIPM and the office of the HOCSF was borne out of the desire to achieve the objectives of a better civil service in the country.

    She emphasised that the CIPM initiative was about the total transformation of the federal civil service.

    “PMS is about making yourself accountable to what you have to deliver on a day-to-day basis, to ensure that you succeed, your team succeeds and the entire federal service system succeeds,” Akinsanya said.

    The Permanent Secretary in the office of the HOCSF, Mr Mammam Mahmuda, said that the objectives of PMS is to strengthen civil servants to be more responsible and accountable in the discharge of their duties.

  • Fuel scarcity scare hits Abuja as long queues resurface at petrol stations

    Fuel scarcity scare hits Abuja as long queues resurface at petrol stations

    Long queues have resurfaced in most filling stations in the Federal Capital Territory, Abuja.

    Most filling stations along the Kubwa Expressway and around Area 1 were filled with motorists trying to buy Premium Motor Spirit (PMS), also known as petrol.

    Some of the petrol stations that recorded the queues are Shema Filling Station, AA Ranonoil, Conoil, Mobil, Dan oil PLC and the Nigerian National Petroleum Corporation (NNPC) filling stations, all located along the Kubwa expressway.

    Some of the motorists who spoke to NAN said they just noticed the long queues and decided to top up.

    Also speaking, a taxi driver who identified himself only as Moses, said he had to buy fuel to be able to do his businesses, in case there is scarcity.

    “I did not have in mind to buy petrol, but seeing queues in two filling stations and coming down, the same thing is happening. I have to do something.

    “I just have to buy now with the small money that I have, to get ready for Tuesday’s work.

    Meanwhile, the Nigerian National Petroleum Corporation (NNPC) has cautioned motorists not to engage in panic buying of Premium Motor Spirit (PMS) also known as petrol, assuring of normalcy in the supply of petroleum products.

    Dr Kennie Obateru, the Group General Manager, Group Public Affairs Division, who disclosed this to NAN in Abuja on Monday added that the long queues currently being experienced were due to the curfew imposed in some States over the EndSARS protests.

    Obateru said that the curfew affected the free movement of vehicles for the supply of products, but assured of normalcy in a couple of days.

    “The disruptions and curtailment of free flow of vehicular movement occasioned by the EndSARS protests, the attendant curfews, restrictions and vandalism affect the supply situation.

    “Normalcy is expected to return to the petroleum products supply chain in the next couple of days.

    “There is no need for panic buying, be rest assured that supply will soon return to the entire country,” he said.

  • Fuel price: PPPRA owns up on contradiction in deregulation policy

    Fuel price: PPPRA owns up on contradiction in deregulation policy

    The Petroleum Products Pricing Regulatory Agency (PPPRA) has assured Nigerians that the deregulation of the downstream oil sector is in the best interest of the country.

    The Executive Secretary of the Agency, Saidu Abdulkadir, gave the assurance on Tuesday in Abuja, while briefing newsmen on the deregulation of the downstream oil and gas sector.

    Abdulkadir said that the recent increase in the pump price of the Premium Motor Spirit, PMS, hinges on the global market and availability of forex to marketers.

    Represented by Mr Victor Shidok, the General Manager, Administration and Human Relations, Abdulkadir said many marketers were yet to start importation of products due to non-availability of foreign exchange.

    According to him, although the Petroleum Products Marketing Company (PPMC), a subsidiary of the Nigerian National Petroleum Corporation (PPMC), remained the sole importer of the product, PPPRA will continue to monitor development to check profiteering by marketers.

    “The PPPRA as a regulator will continue the role of a watchdog in this deregulation regime. We will continue to maintain our role as a regulator and ensure that Nigerians are not short changed in any way in this process.

    “You know how things are globally with the impact of COVID-19 to the global oil market. Accessing forex remains a challenge for marketers.

    “We are hopeful that in a few months to come, Nigerians will understand what government is doing to stabilise the downstream sector,’’ he said.

    Abdulkadir said that the agency would continue to monitor the code of conduct that guides operation of marketers in the industry and ensure that it was not violated.

    He reiterated that government was no longer in business of fixing the pump price of petrol but would monitor marketers to avoid profiteering.

    He hinted that the agency may not be able to provide monthly price band for the product as it contradicts the deregulation policy.

    “If we give you the price band for this month, it is like price fixing’’ he said, and assured Nigerians that better days were ahead as things would normalise with time.

  • Buhari opens up on provision for fuel subsidy in revised 2020 budget

    Buhari opens up on provision for fuel subsidy in revised 2020 budget

    President Muhammadu Buhari has said there is no provision for fuel subsidy in the revised 2020 budget.

    He said this is simply because the federal government cannot afford it, if reasonable provisions must be made for health, education and other social services.

    Buhari made this known in his address at the first year ministerial performance review retreat at the State House conference centre in Abuja.

    He said the Coronavirus disease (COVID-19) pandemic has led to a severe downturn in the funds available to finance the nation’s budget and that it has severely hampered capacity too.

    “One of the steps we took at the beginning of the crisis in March when oil prices collapsed at the height of the global lockdown, was the deregulation of the price of premium motor spirit (PMS) such that the benefit of lower prices at that time was passed to consumers. This was welcome by all and sundry.

    “The effect of deregulation though is that PMS prices will change with changes in global oil prices. This means quite regrettably that as oil prices recover we would see some increases in PMS prices. This is what has happened now. When global prices rose, it meant that the price of petrol locally will also go up.

    “There are several negative consequences if Government should even attempt to go back to the business of fixing or subsidizing PMS prices.

    “First of all, it would mean a return to the costly subsidy regime. Today we have 60% less revenues, we just cannot afford the cost.

    “The second danger is the potential return of fuel queues – which has, thankfully, become a thing of the past under this administration.

    “Nigerians no longer have to endure long queues just to buy petrol, often at highly inflated prices.

    “Also, as I hinted earlier, there is no provision for fuel subsidy in the revised 2020 budget, simply because we are not able to afford it, if reasonable provisions must be made for health, education and other social services. We now simply have no choice,” Buhari said.

    The President, nevertheless, assured Nigerians that the government is extremely mindful of the pains that higher prices mean at this time.

    “We do not take the sacrifices that all Nigerians have to make for granted. We will continue to seek ways and means of cushioning pains especially for the most vulnerable in our midst.

    “We will also remain alert to our responsibilities to ensure that marketers do not exploit citizens by raising pump price arbitrarily.

    “This is the role that government must now play through the PPRA. This explains why the PPRA made the announcement a few days ago setting the range of price that must not be exceeded by marketers.

    “The advantage we now have is that anyone can bring in petroleum products and compete with marketers, that way the price of petrol will be keep coming down,” Buhari said.

  • Marketers react as PPMC fixes ex-depot price of petrol at N138.62 per litre

    Marketers react as PPMC fixes ex-depot price of petrol at N138.62 per litre

    …MOMAN Chairman says pump price of petrol could go as high as N151 per litre

    The Major Oil Marketers Association of Nigeria (MOMAN) has said Nigeria is gradually heading towards full deregulation of the Premium Motor Spirit (PMS), which will enable pump price to be determined by market forces.

    Mr Tunji Oyebanji, Chairman, MOMAN, disclosed this on Wednesday after the Petroleum Products Marketing Company (PPMC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC) fixed N138.62 as ex-depot price fixed for PMS, also known as petrol, effective Aug. 5.

    Unlike in past months, the Petroleum Products Pricing for Regulatory Agency (PPPRA) has yet to release the monthly pricing modulation for petroleum products for August. The monthly pricing determines the pump price that the products will be sold to motorists.

    Oyebanji, who was reacting to the development, in an interview in Lagos, said it would give marketers the option to adjust their prices.

    “So what the PPMC has done is to look at the average cost of fuel for the last 30 days and arrive at a workable figure that will protect the interest of marketers and end users.

    “It takes about 45 days for a cargo to get here and the prices will fluctuate during that period so that is why they use average.

    “Ultimately, we are closer to full deregulation now because government has said no more subsidy and that market forces will determine the price.

    “Before they didn’t allow marketers to fix the price but with this latest step whereby they only release the ex-depot price and gave them margin on top, it will now be left for the marketers to determine the pump price,” he told NAN.

    Oyebanji explained that the margin to be added to the ex-depot price would be determined by the marketers themselves which would increase competition in the sector.

    “Some marketers may decide to add N14 or N15 which will put the pump price between N150 and N151 per litre. That is our assumption and understanding because nobody has said so expressly.

    “If this is allowed, it means they are listening to what we have been saying all along and so long the ex-depot price is based on realistic commercial parameters, marketers will be able to operate,” he added.

    The MOMAN chairman said marketers can now decide where to make their profits from the various allowed margins such as transportation margin, dealers’ margin and marketers’ margin.

    Oyebanji said: “So they can look at their businesses holistically and decide to forgo profit from one end in order to attract more customers.

    “That is why you find some marketers in Ibadan for instance selling at a low price because instead of making N2 from transportation side, they have decided that they will not make any money there and reflect it on their pump price to make more sales.

    “This will increase competition and those who cannot cope will either merge or fold up”.