The Petroleum Products Pricing Regulatory Agency on Monday hinted that the price of petrol in the country might drop or increase following the price liberation scheme currently in place.
In order to ascertain the applicable foreign exchange rates for the importation of petroleum products, the PPPRA has also called upon the Central Bank of Nigeria to carry this out.
The Executive Secretary of the Agency, Abdulkadir Saidu, revealed this in a recent interview.
Saidu said, “What we have in place is a market reflective pricing system. Petroleum products prices will be adjusted in line with market realities and the result is what we see presently with prices on the downward slide.
“Accordingly, price will naturally be adjusted to reflect a true picture of market fundamentals at any particular period, high or low.”
Efforts were being made to develop alternative fuels to the PMS by deepening the Utilisation of Liquefied Petroleum Gas/Compressed Natural Gas as auto gas in Nigeria, Saidu added.
According to Saidu, this would come into fruition in the medium term and would help bolster supply in case there’s a petrol hike.
In helping marketers secure foreign exchange for the importation of petroleum products, Saidu said that the PPPRA is liaising with the CBN to determine the applicable rates to be made available to oil marketers.
The PPPRA Chairman stressed that the rate reflects on the pricing system. He added that the price would guide the sale of the PMS in Nigeria, adding that the agency planned to extend the same pricing mechanism to kerosene, diesel and others.
Speaking generally on the Nigerian economy, Saidu added that the plunge in global crude prices made it increasingly difficult for government to finance the 2020 national budget as it was predicated on a crude price of $57 per barrel.
“The low crude oil prices, therefore, presented the opportunity to address the lingering challenges associated with the under/over-recovery regime and free up vital funds required to develop other key sectors of the economy” he said.
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In the wake of the current situation, he expressed high hopes that the Dangote Refinery and other existing refinery projects within the country follow in the new pricing scheme
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