The Petroleum Product Pricing Regulatory Agency (PPPRA) has reiterated that the forces of demand and supply will henceforth determine the price of Premium Motor Spirit (PMS) popularly referred to as petrol.
PPPRA’s General Manager Administration and Human Resources, Mr. Victor Shidok, who said this at a media parley in Abuja Tuesday, explained that with a deregulated regime, it would no longer fix the price of petrol.
According to him, “there would be no more price band.”
While acknowledging the pain government’s action will cause Nigerians, Shidok said that “with time everybody will appreciate the federal government’s action.”
Speaking at a retreat for ministers Monday in Abuja President Muhammadu Buhari said that the government would not go back on subsidy removal saying that his administration will no longer borrow money to pay subsidy.
However, there have been outcry from Nigerians describing federal government action as insensitive, meant to increase the suffering of the average Nigerian.
He noted that with the Petroleum Product Marketing Company (PPMC) as the sole importer of fuel into the country, they would not want to sell at a price they won’t make profit.
“As a marketer, the question that would be uppermost in your mind is, what have I spent to make this product available and that will determine the price you will sell.
If I source my product for N20 that is my cost, when the system all the questions being asked now will not even arise,” he added.
While the Managing Director of PPMC, Musa Lawn did cause a stir when he insisted that there was nothing to clarify as the President statement on Monday with his minister was very explicit.
“The President has said it all there is nothing to add or clarify,” he said, before dropping his microphone and stormed out of the meeting.
