PMS Price To Change As FG Reviews PMS Pricing Template

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PMS Price To Be Reviewed As FG Reviews PMS Pricing Template

The Federal Government over the weekend, said it would undertake a review of the pricing template for Premium Motor Spirit (PMS).

The move, the Federal Government disclosed was to forestall a further increase in the price of the commodity.

Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, stated this during a grand award ceremony organized by the Petroleum Products Pricing Regulatory Agency (PPPRA) branch of the Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSAN, in Abuja.

READ ALSO:  Fuel Pump Price Increased By N4/litre At NNPC Mega Stations

Dr. Kachikwu disclosed that the review of the template would be done with oil marketers and other stakeholders.

According to him, this would help cushion the effect of rising foreign exchange rates and the dwindling value of the naira against major international currencies on the price of petrol.

He also stated that he is not aware of the fact that the retail arm of Nigerian National Petroleum Corporation, NNPC, has increased the price of petrol from N141 per litre to N145 per litre.

N145 per litre is at present the maximum PMS price allowed by government under the price modulation mechanism.

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Dr. Kachikwu added that he will consult with the NNPC management to understand the reason for the increase.

He said:

“I am not aware that the NNPC has increased price.

“I need to look into that, it is a bit of surprise for me, because they are processes in doing this, if they have done that, it means they are doing it wrongly.

“Let me find out what the facts are.”



Speaking on the petrol price template, Kachikwu explained that the review would eliminate certain charges that are attributable to the Federal Government and some of its agencies.

PMS Price To Be Reviewed By Federal Government

This, he said, is so that the price can be retained where it is at the moment.

Kachikwu further disclosed:

“One of the things I think we had hoped to do, which we would still do, before we embark on any price increase is to work on those templates.

“There are still areas that are within the government controlled aspects; payments to the Ministry of Transport and the rest; payments to the Nigerian Ports Authority, NPA.

“We are working on the possibility of being able to shift that out so that we can still modulate the prices within where it is right now.

“But I would hold a conversation with the industry and see how it is going.

“At the end of the day, I think PPPRA is the one that has the authority to say it is time the templates does justify some level of movement.

“Otherwise you have a crisis of individual decisions on pricing.”

READ ALSO:  NNPC, Petroleum Ministry Deny Plans To Hike Fuel Price

Dr. Kachikwu further explained that the meeting brokered between President Muhammadu Buhari and leaders of the Niger Delta was part of a series of actions to bring lasting peace to the Niger Delta region.

The Petroleum Minister lamented that the crisis recorded in the region over the last one year had taken its toll on the country, its resources and even the sustenance of the oil industry.

He mentioned that the President is committed to finding solutions to these problems, finding lasting solutions, not one-offs.

Kachikwu explained that this is why President Buhari is taking his time to understand how these people operate.