FG, NNPC Ltd Have No Authority To Fix Petrol Price – YSA Insists

The Yoruba Stakeholders Assembly (YSA), on Wednesday, September 18, 2024, declared that neither the Federal Government nor the Nigerian National Petroleum Corporation Limited (NNPC Ltd) possesses the authority to fix the price of Premium Motor Spirit (PMS) popularly known as petrol.

The YSA particularly noted that pricing mechanism for PMS has undergone a significant transformation, evolving into a deregulated market where market forces predominantly dictate prices.

In a statement made available to Forefront News, Comrade Dayo Olawale, Convener of Yoruba Stakeholders Assembly said the framework is designed to create a competitive environment that benefits consumers while fostering a healthier economic climate.

Olawale also said that forces are at play in a deregulated market in which the price of PMS is influenced by multiple factors, including supply and demand, global oil prices, and operational costs related to refining and distribution.

The Yorba Stakeholders Assembly further said that the NNPC Ltd has actively engaged with private entities to ensure a steady supply of fuel, thus promoting competition and potentially lowering prices.

Commenting on what it described as “The Reality of Fuel Acquisition Rates,” the YSA said that recent discussions have brought to light the fact that NNPC Ltd procured fuel from Dangote Refinery at a cost of N898 per liter, stressing 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.

It said that the negotiation process underscores NNPC Ltd’s commitment to representing the interests of the Nigerian populace.

The Assembly further said; “For the past year, the market price of petrol has hovered around N1,100 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.

“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.

“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.

“NNPC Ltd’s directive to Dangote to also sell his fuel to other marketers, under a willing buyer-willing seller basis as outlined in the Petroleum Industry Act (PIA), reinforces the commitment to creating a competitive market.

“This action aims to ensure that pricing remains fair, accessible, and transparent—principles that should govern all transactions in the energy sector,” it said.

The YSA also said that recent statements suggesting that Dangote intends to sell fuel to Nigerians at prices significantly lower than market rates, only for the government to intervene, are grossly misinformed.

It stressed that the narrative that suggests government manipulation of fuel prices is not grounded in reality, adding that the truth lies in the fact 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.

It further 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,” it said.

The Yoruba Stakeholders Assembly assured that as a committed voice for transparency and awareness in Nigeria, it is committed to fostering an informed citizenry—one that propels Nigeria towards a sustainable future that is grounded in facts.

, the Yoruba Stakeholders Assembly seeks to address the recent misinformation surrounding the pricing of Premium Motor Spirit (PMS) in the country.

It said that 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.

It said; “Let this statement serve as a reminder that informed citizens are the backbone of a thriving democracy. A nuanced understanding of market dynamics, governmental roles, and inter-business negotiations is essential in fostering a culture of accountability and transparency”.

The YSA urged all Nigerians to remain vigilant, seek verifiable facts, and engage in productive discussions that ultimately contribute to a more sustainable future for our nation.