Business Featured Posts News

We Did Not Raise The Price Of Gasoline; Marketers Did -FG

The Federal Government insisted on Monday that it had not raised the price of Premium Motor Spirit, also known as petrol, above the regulated price of N165/litre.

It claimed that the increase in the price of the commodity, which is now between N175/litre and N230/litre depending on the location of purchase, was caused by oil marketers. The government, on the other hand, was unable to explain why it was not enforcing the approved price.

Without any official approval from the government, oil marketers across the country recently raised the price of petrol above the approved N165/litre rate. This was despite the fact that commodity prices were still regulated.

The marketers had argued that the N165/litre approved price was not sustainable and was contributory to the scarcity of petrol in many locations nationwide.

They eventually hiked the pump price of petrol and had maintained the price increase for several weeks running without any resistance by the government.


Speaking on the sidelines of the stakeholders’ consultation forum on Midstream and Downstream Petroleum Regulations organised by the Nigerian Midstream and Downstream Petroleum Regulatory Authority in Abuja, the Minister of State for Petroleum Resources, Chief Timipre Sylva, insisted the government had not raised the price of PMS.

Asked to comment on the disparity in the pump prices of petrol and why the government had not waded into the matter, the minister said, “Well, I can tell you authoritatively that we have not deregulated.

“The government is still subsidising, if there are increases in the price it is not from the government, it is probably from the marketers.

Reverse Fuel Price Now – NLC Asks FG

“But, of course, I will talk to the NMDPRA’s chief executive to ensure that they actually regulate the prices. But this is not from the government because we have not deregulated.”

Probed further to explain why no action had been taken against the marketers and why there had been no monitoring exercise to enforce the government approved price, Sylva replied, “Well, I don’t know about monitoring exercise.

“But I know that the authority is fully on their job and the queues will be dissipated very soon.”


On the essence of the forum, the Chief Executive, NMDPRA, Farouk Ahmed, said the programme was in accordance with the demands of the Petroleum Industry Act to allow stakeholders participate in the making of regulations which impact on them.

He said, “Section 216 of the PIA mandates the authority to ‘consult with stakeholders prior to finalising any regulations or amendments to regulations’.

“However, we do not consider this an obligation or box-ticking exercise as continuous engagement with our stakeholders to enable their business is at the core of our regulatory philosophy.”


Ahmed said the regulator had so far published and received significant feedback on the 10 regulations to be considered, as he outlined the pm to include the Petroleum (Transportation and Shipment) Regulations; Assignment and Transfer of Licence and Permit Regulations; and Midstream and Downstream Petroleum (Operations) Regulations.

Gbajabiamila Reveals Why Social Media Must Be Regulated

Others include the Petroleum Pipeline Regulations; Gas Pricing Domestic Demand and Delivery Regulations; Natural Gas Pipeline Tariff Regulations; and Midstream and Downstream Decommissioning and Abandonment Regulations.


He named the remaining to include the Environmental Regulations for Midstream and Downstream Operations; Midstream and Downstream Gas Infrastructure Fund Regulations; and Environmental Remediation Funds Regulations.

Ahmed assured industry stakeholders that their inputs as regards the regulations during the forum, would be taken seriously, adding that the aim was to grow the Nigerian oil sector.


Follow us on Facebook



Post Disclaimer

The opinions, beliefs and viewpoints expressed by the author and forum participants on this website do not necessarily reflect the opinions, beliefs and viewpoints of Anaedo Online or official policies of the Anaedo Online.

Stories you may like