A group, Yoruba Stakeholders Assembly says there is need to enlighten the public on the realities surrounding the pricing of Premium Motor Spirit (PMS) in the country, assuring that it will continue to advocate for ‘transparency and awareness in Nigeria.’
In a recent statement signed by the Convener of the Assembly, Dayo Olawale, the group stressed the need to correct misinformation, saying: ‘In this era of rampant speculation and misinformation, it is crucial to separate fact from fiction, especially when the livelihoods of ordinary Nigerians are at stake.’
While saying that ‘informed citizens are the backbone of a thriving democracy,’ the statement noted that a nuanced understanding of market dynamics, governmental roles, and inter-business negotiations is essential to fostering a culture of accountability and transparency.
‘We urge all Nigerians to remain vigilant, seek verifiable facts, and engage in productive discussions that ultimately contribute to a more sustainable future for our nation.’
In its first item discussed, listed as ‘fact 1,’ the group explained that contrary to popular belief, neither the government nor the Nigerian National Petroleum Company Limited (NNPC Ltd) possesses the authority to fix the price of PMS, adding that pricing mechanism for PMS has undergone significant transformation, evolving into a deregulated market where market forces predominantly dictate prices.
The group explained that the framework is designed to create a competitive environment that benefits consumers while fostering a healthier economic climate.
Discussing fact 2, the statement highlighted the role played by market forces, saying: ‘In a deregulated market, the price of PMS is influenced by multiple factors, including supply and demand, global oil prices, and operational costs related to refining and distribution,’ adding that the NNPC Ltd has actively engaged with private entities to ensure a steady supply of fuel, thus promoting competition and potentially lowering prices.
While it identified the reality of fuel acquisition rates as a third fact, the group explained that recent discussions have brought to light the fact that NNPC Ltd procured fuel from Dangote Refinery at a cost of N898 per liter, adding that it is critical to emphasize that NNPC Ltd’s engagement with Dangote was aimed exclusively at ensuring that Nigerians have access to fuel at a fair price.
The group said the negotiation process underscores the commitment of NNPC Ltd to representing the interest of the Nigerian populace.
Discussing the 4th fact, the group noted that there are factors that help to sustain affordable fuel prices. ‘For the past year, the market price of petrol has hovered around N1,100.00 per liter. However, thanks to the proactive measures undertaken by NNPC Ltd, ordinary Nigerians have been shielded from these soaring prices, benefiting from a subsidized rate of N620 per liter. This has been possible due to NNPC Ltd covering the shortfall—an effort that, while noble, has become an unsustainable endeavor. This cry for sustainability reflects NNPC Ltd’s commitment to balancing providing affordable fuel and maintaining fiscal responsibility.’
In its fact 5, the group addressed misconceptions regarding pricing dynamics, saying: ‘There is a misconception that the government dictated the pricing structure for Dangote’s fuel. In actuality, it is Dangote who independently decided to sell his refined fuel to NNPC Ltd at N898 per liter,’ adding that initial negotiations revealed Dangote’s proposed price to be well over N900 per liter, which NNPC Ltd successfully negotiated down to a more manageable rate for the benefit of the Nigerian consumer.
Emphasizing the need to for a competitive market for PMS, the Yoruba Assembly commended the NNPC for directing Dangote Refinery to also sell its PMS to other marketers, under a willing buyer-willing seller basis as outlined in the Petroleum Industry Act (PIA), adding that the directive reinforces the commitment to creating a competitive market. ‘This action aims to ensure that pricing remains fair, accessible, and transparent,’ it said, adding that such hallowed principles should govern all transactions in the energy sector.
The group described as false the notion that Dangote intends to sell fuel to Nigerians at prices lower than market rates, only for the government to intervene. ‘The narrative that suggests government manipulation of fuel prices is not grounded in reality,’ the group said, adding that the price negotiated by NNPC Ltd is a direct result of market influences, competitive negotiations, and the pressing need to ensure fair access to fuel for all Nigerians.
In its call for awareness, the Yoruba Assembly said: ‘As we navigate these turbulent waters of economic discourse and fuel pricing, we urge all Nigerians to remain wise and discerning consumers of information.’
‘It is vital for the public discourse to be anchored in facts rather than fiction so that we, as a nation, can collectively address the challenges we face with integrity and transparency.’
‘The Yoruba Stakeholders Assembly is committed to fostering an informed citizenry, one that propels Nigeria towards a sustainable future, grounded in facts.’
